AS UM MARY of The Fiscal 
Duties of Township Trustees 

With an Appendix in which is included the 
Advisory Board Act, The Public Accounting 
Act and Other Matters & & 40 40 




NINETEEN HUNDRED AND TEN 







Class V.JS4 

Book _ 



A SUMMARY 



OF 



THE FISCAL DUTIES OF TOWNSHIP 
TRUSTEES 



WITH AN APPENDIX 

IN WHICH IS INCLUDED THE ADVISORY BOARD 

ACT, THE PUBLIC ACCOUNTING ACT 

AND OTHER MATTERS 



PREPARED UNDER THE DIRECTION OF AND 
ISSUED BY THE STATE BOARD OF ACCOUNTS 



5wcL1gm>— Cw) 



1910 



INDIANAPOLIS : 

WM. B. BURFORD, CONTRACTOR FOR STATE PRINTING AND BINDING 
1910 



/0-3308 






0. OF & 



A SUMMARY OF THE FISCAL DUTIES 
OF TOWNSHIP TRUSTEES. 

[The references are to Burns' Revised Statutes 1908.] 



THE MANNER OF HANDLING FUNDS. 

Number of Townships and Trustees — Fiscal Year. 

Paragraph 1. The ninety- two counties of Indiana are 
divided into 1,016 townships. Each township is both a civil 
and school corporation. For each township there is only 
one trustee, who, in the performance of his duties, acts sep- 
arately as trustee of the civil township and as trustee of the 
school township. (Section 6405, Rev. Stat. 1908.) He is 
also ex-officio overseer of the poor. (Section 9741 Rev. 
Stat. 1908.) The fiscal year of the township covers the cal- 
endar year, viz., from January 1 to December 31. 

Civil and School Townships— Limitation of Indebtedness. 

Par. 2. Each township is a separate municipality, which 
receives its own funds and makes its own expenditures, for 
its own local purposes, both civil and school. Under Arti- 
cle 13 of the State Constitution no municipality can incur 
an indebtedness in excess of two per cent, of the value of the 
property therein. 

Trustee's Bond — Amount and Where Filed. 

Par. 3. Trustees, before they take their offices on Jan 
uary 1st following their election, must take an oath of office 
and give bond payable to the State of Indiana in a sum not 
less than double the amount of public money, both school 
and civil, which may come into their hands at any time dur- 
ing their term. (Sections 9563 and 6406, Rev. Stat. 1908.) 
This bond must be filed with the countv auditor. (Section 
9103, Rev. Stat. 1908.) 

Accounting by Predecessor. 

Par. 4. When a trustee goes into office lie must require 
an accounting from his predecessor, who must pay over all 

—3— 



the money in each fund with which he is chargeable and turn 
over all books and papers belonging to the township. (Sec- 
tion 9575, Rev. Stat. 1908.) 

Separation of Funds. 

Pae. 5. The incoming trustee must charge himself, by 
funds, with the full amount received from his predecessor; 
that is to say, all moneys belonging to the civil township 
must be credited to the respective funds of that township 
according to the amount due each, and all the moneys be- 
longing to the school township must be properly credited to 
the respective funds of that corporation. All moneys after- 
ward received by the trustee must be likewise separated 
and credited. 

Use of Separate Funds — Diversion Illegal. 

Pae. 6. Each fund can be used only for matters legally 
chargeable against it. The money in one fund cannot be 
used to pay any claim or expense properly payable out of 
another fund, and if so paid the trustee is liable. (Section 
9597, Rev. Stat. 1908.) The trustee cannot borrow from 
one fund to meet an obligation of another. This is the law, 
and by following it the trustee will avoid that confusion 
which is the cause of endless trouble and serious liability. 

Inspection and Examination of Books. 

Pae. 7. The trustee's books and records shall always be 
open for inspection (Section 9579, Rev. Stat. 1908), and are 
subject to examination by the state department of inspec- 
tion and supervision of prblic offices. (Acts 1909, pp. 141-2, 
Sees. 9, 10.) As to school matters, the trustee's books, pa- 
pers and accounts are also at all times subject to inspection 
by the county superintendent and auditor. (Sections 6429- 
6431, Rev. Stat. 1908.) 

Daily Balance. 

Pae. 8. Every public officer who receives or disburses 
public funds must keep a cash book in which there shall be 
entered daily, by item, all receipts and disbursements of 
public funds, which cash book shall be daily balanced, show- 
ing funds on hand at the close of each day. (Section 7522, 
Rev. Stat. 1908.) 



Township Board of Finance. 

Par. 9. The advisory board of each township is the 
board of finance for the township, for both civil and school 
funds, and has advisory supervision of the safe keeping and 
deposit of all public money belonging thereto. (Section 
7530, Eev. Stat. 1908.) 

Deposit of Public Funds — Verified Statement to Board of 
Finance. 
Par. 10. Township "trustees who receive or have on 
hand public funds subject to deposit shall deposit the same 
in the depository selected by the board of finance, and file 
with the secretary of such finance board a verified state- 
ment of the funds deposited. (Section 7531, Eev. Stat. 
1908.) 

Choosing Depositories — Number of. 

Par. 11. All of the qualified banks and trust companies 
in a township which tender satisfactory security must be 
chosen as depositories impartially, but if there is no quali- 
fied bank or trust company in the township the township 
finance board is not bound to take all that offer in the 
county, but may choose a sufficient number in their discre- 
tion. Deposits must be made in proportion to the capital 
stock and surplus of the selected depositories. (Acts 1909, 
p. 438.) 

How Deposits are Made. 

Par. 12. The trustee is required to deposit and main- 
tain the balance in each depository as nearly as practicable 
in proportion to the highest sum awarded to such deposi- 
tories. (Acts 1909, p. 439.) He is not, however, obliged to 
split a fund in making deposits. He is only required to 
maintain the equality of deposits and balances above indi- 
cated and keep a proper and separate record of his funds 
in his own books. 

Time of Making Deposits — Interest Goes to Tuition Fund. 
Par. 13. The funds collected or received by a township 
trustee must be deposited in the public depository provided 
therefor on or before the first and fifteenth days of each 
month. (Section 7545, Eev. Stat. 1908.) All interest 
•earned, must be added to the tuition fund of the township. 
(Acts 1909, p. 438.) 



Warrant- Check in Payment of Claims. 

Par. 14. No trustee shall draw a warrant check upon 
the depository for any purpose except in payment of a legal 
claim against the township or school township. (Section 
7545, Rev. Stat. 1908.) 

Failure to Make Deposit — Illegal Drawing of Check — 
Penalty. 
Par. 15. If any trustee fails to deposit the public funds 
coming into his hands in accordance with the statute, or 
draws any check contrary to the provisions of the statute, 
he is deemed guilty of embezzlement, and on conviction is 
subject to a penalty of imprisonment in the state prison 
not less than one year nor more than twenty years and a 
fine not to exceed $1,000, to which penalty is added a re- 
moval from office and liability on his official bond for any 
loss or damage which may accrue. (Section 7545, Rev. 
Stat. 1908.) 

Voucher — Form of. 

Par. 16. A voucher in the form prescribed by the State 
Board of Accounts must be taken from all persons to whom 
money is paid by warrant-check. Xo claim can be paid in 
any other manner than by warrant-check, after the proper 
voucher has been executed by the claimant and received by 
the trustee. 

Payment of Salaries and Wages. 

Par. 17. Teachers, janitors and the drivers of transpor- 
tation wagons should be paid monthly in order that only one 
voucher and warrant-check each month will be required for 
each person so employed. 

Manner of Drawing and Form of Warrants. 

Par, 18. All township warrants shall be drawn by the 
township trustee directly against a township depository. 
(Section 7545, Rev. Stat. 1908.) These warrants must be 
in the form prescribed by the State Board of Accounts. 

Deposit Exempts Trustee from Liability. 

Par. 19. When public funds have been deposited as pro- 
vided in the depository law, the trustee and his bondsmen 



are exempted from liability by reason of loss of such funds 
from failure, bankruptcy, or any other act of the depository 
to the extent of the funds in the hands of such depository 
at the time of such failure or bankruptcy. (Section 7546, 
Rev. Stat. 1908.) 

Financial Record and Cash Book — Form and Use of. 

Par. 20. Each trustee must procure a financial record 
and cash book in which he shall keep an itemized and ac 
curate account of the financial affairs of the township, 
charging 1 himself with each sum of money when and as re- 
ceived, from every source, giving the date, from whom re- 
ceived, and to what fund credited. He must also credit 
himself with all moneys when and as paid out, showing 
when, on what account, and to whom and out of what fund 
paid. (Section 9596, Rev. Stat. 1908.) The form of this 
book is prescribed by the State Board of Accounts. (Acts 
1909, p. 136.) 

Forms Prescribed by State Board of Accounts — Use of 
Compulsory. 

Par. 21. It is the duty of the trustee to use all books, 
forms, records and systems of accounting and reporting 
prescribed by the State Board of Accounts for uniform use 
in all the townships of the state. If he shall fail to do so he 
becomes subject to a fine of not less than $100, to which is 
added removal from office. (Acts 1909, p. 150, Section 22.) 

Trustee Must Certify Correctness of Claims. 

Par. 22. Before drawing a warrant for any claim which 
it is his duty to pass upon and allow, the trustee shall cer 
tify to the correctness of the claim over his official signa- 
ture. (Acts 1909, p. 145, Section 13.) 

Purchase of Book and Blank Forms. 

Par. 23. When any form for township use has been 
prescribed by the State Board of Accounts the trustee is 
duly notified of the fact. Thereafter in purchasing either 
book or blank forms he should be careful that they are the 
kind prescribed and that they carry the State Board's im- 
print and form number. 



SOURCES OF TOWNSHIP FUNDS. 



RECEIPTS BY TAXATION. 

Levy of Civil and School Taxes — Limit Upon. 

Pae. 24. The manner of levying taxes for township pur- 
poses, both civil and school, is set out in full in the town- 
ship act of 1899, which, with the amendments, is printed in 
the appendix. The taxes that may be levied, with the limit 
fixed by law upon each, are as follows : 

1. For township expenditures ; no statutory limit. 

2. Local tuition expenditures; limit 50 cents on each 
$100 of taxable property and 25 cents poll. 

3. Special school expenditures; limit 50 cents on each 
$100 of taxable property and $1.00 poll. 

4. Additional special school for expenses for compul- 
sory education ; limit 10 cents on each $100 of taxable prop- 
erty. 

5. Eoad tax (which may be worked out) ; limit 30 cents 
on each $100 of taxable property. 

6. Additional road tax (payable in cash) ; limit 10 
cents on each $100 of taxable property. 

7. Library expenditures ; limit 1, 2, 5, 6 or 10 cents on 
each $100, depending upon the particular statute under 
which the tax is levied. 

8. Eelief of poor, previous year ; limit the amount nec- 
essary to reimburse the county for sum advanced to trustee 
as overseer of township poor. 

9. Other items, if any, within the limit fixed by law in 
any particular case. 

Collection of Taxes — When Paid to Trustee. 

Pae. 25. All of the above taxes are collected by the 
county treasurer as other taxes are collected, except the 
road tax, which is all payable at the first installment and 
distributed to the trustee by the treasurer after his June 
settlement with the auditor. All other taxes are paid to 



the trustee by the county treasurer immediately after each 
semi-annual settlement with the auditor. (Section 9576, 
Rev. Stat. 1908.) 

Unexpended Special Taxes. 

Pak. 26. Unexpended balances of special taxes levied 
to purchase gravel roads or to aid railroads must be paid 
back to township trustees by the county treasurer and are 
applied to the township fund. (Section 9577, Rev. Stat. 
1908.) 

Dog- Tax — Collection by Assessor — Payment to Trustee. 

Par. 27. This tax is collected by the township assessor, 
who, within rive days after the completion of the township 
assessment, must turn over to the trustee all money received 
by him as dog tax and all records relating to its collection 
and a copy of all receipts issued to persons paying the tax. 
(Sections '3258 and 3259, Rev. Stat. 1908.) , 

School Taxes — When Apportioned to Township. 

Par. 28. The state levies a tax of thirteen cents and six 
mills on each $100 worth of taxable property in the state 
and a poll tax of 50 cents upon each legal voter for the com- 
mon school tuition fund. (Section 6432, Rev. Stat. 1908.) 
This tax is apportioned to the counties semi-annually, and 
on the second Monday of July and the last Monday in Jan- 
uary is apportioned by the county auditor to the several 
townships and paid to them by the county treasurer. (Sec- 
tion 6475, Rev. Stat. 1908.) 

Taxes Collected for Abandoned Project. 

Par. 29. Special taxes collected to construct a building 
must be transferred to the township fund when the building 
project is abandoned. (Section 6446, Rev. Stat. 1908.) 

RECEIPTS FROM OTHER SOURCES. 

Common School Fund — Apportionment to Townships. 

Par. 30. Each township's portion of the common school 
tuition fund derived from sources other than taxation is 
api oitioned and paid to such township semi-annually at the 
same time the state tuition tax is apportioned and paid, viz., 

12— 22689 J 



10 

the second Monday in July and the last Monday in January 
of each year. (The manner of apportioning the school reve- 
nue for tuition is set out fully in Sections 6465 to 6475, Rev, 

Stat. 1908.) 

Docket and Other Fees — When Received. . 

Par, 31. Quarterly, viz., on March 31st, June 30th, Sep- 
tember 30th and December 31st, each township trustee shall 
receive from the justices of the peace in the township all 
docket fees taxed and collected by such justices during the 
quarter and enter the same in the township fund of the 
township. (Section 9570, Rev. Stat. 1908.) In townships 
having justices drawing salaries in lieu of fees, all justice's 
fees must be paid to the trustee. (Section 9570, above.) 

Money from Supervisor. 

Par. 32. Each supervisor of a road district must make 
to the township trustee, on or before the first day of Decem- 
ber each year, a full report of his proceedings and pay over 
to the trustee the balance of commutation money received 
by him and all other money received by him from any 
source. (Section 7769, 7789,' Rev. Stat. 1908.) 

Proceeds of Sale of Property. 

Par. 33. Money derived from the sale of property be- 
longing to the township. Such sales must be at public auc- 
tion after thirty days' notice, posted at six public places 
in the township, giving time, terms and place of sale and 
description of property. (Section 9567, Rev. Stat. 1908.) 

Interest on Township Deposits. 

Par. 34. Under section two of the Act of March 8, 
1909, amending the Public Depository Act of 1907, all 
interest on township deposits must be added to the tuition 
fund of the township. (See Acts of 1909, p. 438.) 



EXPENDITURES BY TOWNSHIP 
TRUSTEE. 

AS TRUSTEE OF THE CIVIL TOWNSHIP. 

The Several Funds. 

Par. 35. ]'n his capacity as trustee of the civil township 
it is the duty of the trustee to administer several funds. 
These several funds, what constitutes them and the pur- 
poses for which they can be used are here set out : 

The Township Fund — What Composes It. 

Pak. 36. The township fund is composed of taxes re- 
ceived semi-annually from the county treasurer; docket 
fees received quarterly from justices of the peace ; all jus- 
tice fees in townships where justices are paid salaries ; spe- 
cial taxes levied to build school house, where such building 
is not constructed; unexpended balances of special gravel 
road or railroad aid taxes ; and any other money that may 
come into the hands of the trustee and not belonging to any 
other fund. 

Disbursement of Township Fund. 

Par. 37. From this fund must be paid all salaries ex- 
cept teachers', the cost of all stationery, advertising, print- 
ing, and records, the cost of supplies furnished to justices 
of the peace, the trustee's compensation and his office rent, 
where an office is authorized by the Advisory Board, and all 
other legal items of expense payable from this fund and 
not exclusively chargeable to any other fund. It has been 
the general practice of trustees where the road fund was 
deficient to class road materials among the "other items," 
but as this practice tends to confusion the road law should 
be made more effective by amendment. 

Cost of Transfers. 

Par. 38. • Under an act of 1909 (Acts of 1909, p. 322),the 
trustee may pay costs of transfers out of either the town- 
ship, tuition or special school fund at his discretion. 

—li— 



12 

Cost of Publishing Annual Report. 

Par, 39. Under Section 9573, Rev. Stat. 1908, the cost 
of the publication of the trustee's annual report is paid 
from the township fund. 

Ditch Assessments. 

Pae. 40. Ditch assessments against a township on ac- 
count of benefits to highways are payable out of the town- 
ship fund. (Section 6150, Rev. Stat/l908.) 

Expense of Examination. 

Pae. 41. Expense of examinations made of civil town- 
ship accounts and of the dockets of justices of the peace by 
the State Department of Inspection and Supervision of 
Public Offices will be deducted by the county auditor from 
the township fund at the next ensuing settlement. (Acts 
1909, p. 136, Sees. 12, 14.) 

The Road Fund— What Composes It. 

Par. 42. The road fund is composed of such part of the 
road tax as shall be paid into the county treasury in lieu of 
work, all the additional road tax collected, and all unex- 
pended commutation money paid into the township treasury 
by the road supervisors. 

Disbursement of Road Fund. 

Pae. 43. The fund derived from the road tax must be 
expended in the improvement of the highways, culverts and 
bridges of the township and the purchase of road material, 
so far as it is available, under such regulations as the trus- 
tee may deem expedient for the public interest, and for this 
purpose the trustee may and should wherever practicable, 
after notice and bids, let out the work to the lowest responsi- 
ble bidder or he shall pay such sums as may be necessary, 
on the order of the supervisors of the township, for work 
done by them under his direction. Where orders are drawn 
by a supervisor upon the trustee they must distinctly state 
the work done by the persons to whom the orders are given. 
(Sections 7781. 7782, Rev. Stat. 1908.) 

Road Receipts — Trustees May Not Redeem. 

Pae. 44. Township trustees have no authority to re- 
deem road receipts issued by supervisors. It is the duty of 



13 

the taxpayers to whom these receipts are given to present 
them to the county treasurer, who shall receive them as so 
much paid on their road taxes, if presented during the year 
in which the work was done or the following year. (Sec- 
tion 7780, Eev. Stat, 1908.) 

Emergency Road Fund for Mail Roads and Culverts. 

Pak. 45. At least five per cent, of the road fund re- 
ceived each year must be set aside as an emergency fund to 
be used in keeping rural mail roads in repair. (Section 
7779, Eev. Stat. 1908.) 

Location and Repair of Bridges. 

Par. 46. Where the board of county commissioners has 
been notified by the trustee of the necessity for the location 
or repair of a bridge or culvert in the township but refuses 
to take action on the ground that the work is not of sufficient 
importance to justify an appropriation from the county 
treasury, the trustee may appropriate part of the road fund 
for such purpose if he deems it right and expedient. (Sec- 
tion 7778, Eev. Stat. 1908.) 

Commutation Money. 

Par. 47. Commutation money paid into the townshi}> 
treasury by the road supervisors must be used for the bene- 
fit of the road districts in which it was collected. (Section 
7769, Eev. Stat. 1908.) 

Road Tools. 

Par. 48. Township trustees must procure with avail- 
able road funds in their hands such tools and implements 
as may be necessary for road districts. (Section 7785, Eev. 
Stat, 1908.) Competitive proposals should be secured from 
responsible dealers in order that the best prices may be ob- 
tained. 

The Poor Fund — Of What Composed and How Managed. 

Par. 49. The poor fund is composed of such necessary 
amounts as may be appropriated by the county councils and 
advanced to township trustees, as overseers of the poor, by 
boards of county commissioners, the county being reim- 
bursed by a tax levied each year in the townships for that 
purpose. The county auditor keeps a debit and credit ac- 



14 

count of advancements and tax collected, and on the first 
day of January each year he must balance the account and 
as soon thereafter as possible transmit a statement of the 
balance to the township trustee as overseer of the poor of 
his township. This balance must be taken into account in 
making the next year's levy. (Section 9778, Rev. 8 tat. 
1908.) 

Disbursements for Poor Relief. 

Pak. 50. As overseer of the poor the trustee has the 
oversight and care of all poor persons in his township so 
long as they remain a charge, and shall see that they are 
properly relieved and taken care of in the manner required 
by law. He must in cases of necessity promptly provide 
medical and surgical attendance and see that such medi- 
cines as are prescribed are promptly furnished. (Section 
9746, Rev. Stat. 1908.) In cases of immediate and pressing 
suffering the trustee must furnish such temporary aid as 
may be necessary, but before final or permanent relief can 
be given the trustee must determine whether it can be ac- 
complished by other means than an expenditure of town- 
ship funds. (Section 9748, Rev. Stat. 1908.) 

Temporary Aid — Limit. 

Par. 51. The trustee may, in proper cases, give tem- 
porary aid to persons who are sick, aged, injured or crip- 
pled and unable to travel even though they are not residents 
of the township, but not to able-bodied non-residents except 
by providing some form of manual labor. (Section 9755, 
9763, 9773, Rev. Stat. 1908.) Persons who have a legal settle- 
ment in the township, however, are entitled to any relief 
that may be necessary not exceeding a value of $15 to any 
person or family unless further relief is authorized by the 
board of county commissioners. (Sections 9745-9748, 9751, 
Rev. Stat, 1908.) 

Medical Relief— Burial— Soldiers or Widows of Soldiers. 

Par. 52. The relief to the value of $15.00 is exclusive of 
burial charges, medical relief such as above mentioned and 
assistance to children under the compulsory education law. 
(Section 9757, Rev. Stat. 1908.) A sum not exceeding $50 
may be expended for the burial of indigent soldiers and 



15 

sailors or their widows, and in addition a burial place may 
be purchased when necessary. (Section 9774, Eev. Stat. 
1908.) Necessary expenses may be incurred for the burial 
of other indigent persons dying in the township, whether 
resident or non-resident. (Section 9773, Rev. Stat. 1908.) 

Books and Clothing for School Children. 

Par. 53. Necessary books and clothing shall be fur- 
nished to children of parents unable to provide them in 
order that such children may attend school and shall be 
paid for by the county commissioners upon the certificate 
of the township trustee. (Sections 6341, 6680, Rev. Stat. 
1908.) 

Transportation of Poor — Proceedings for Removal. 

Par. 54. Expenditures for transportation of non-resi- 
dents can be lawfully made only after inquiry has disclosed 
the legal residence of the person applying, and then the 
transportation must be in the direction of such legal resi- 
dence unless it is shown beyond a reasonable doubt that the 
.person has some valid claim for support or some means of 
support in some other place towards which he or she shall 
ask to be sent. (Section 9756, Rev. Stat. 1908.) Persons 
without a legal settlement in the township but likely to be- 
come a public charge therein may be removed at public ex- 
pense through proceedings before a justice of the peace if 
in condition to be removed. If not in such condition relief 
may be furnished. (Section 9764, Rev. Stat. 1908.) 

The Dog Fund — Collection and Use of, 

Par. 55. The dog fund is composed of the tax collected 
on dogs by the township assessor and paid over to the 
trustee within five days after the completion of the assess- 
ment. (Sections 3258-3259, Rev. Stat. 1908.) The money 
derived from this fund shall be used for the payment of 
damages sustained by owners of sheep, cattle, horses, swine 
and other live stock, or fowls killed, maimed or damaged by 
dogs within the township. (Section 3268, Rev. Stat. "1908.) 
The following sections of the Revised Statutes of 1908 
explain the trustee's duty with respect to the use of this 
fund : 



16 

Claims for Damages — Appraisement. 

Pae. 56. (3269.) The owners of sheep, cattle, swine, 
horses, and other live stock or fowls killed, maimed or dam- 
aged by dogs, shall within ten days from the time thereof, 
report to the trustee of his township under oath in which 
he shall state the number and age as he believes, and the 
value of such stock or fowls so killed or damaged, and the 
damages sustained on account of such stock or fowls killed 
or maimed, in which affidavit he must be joined by two dis- 
interested and reputable freeholders, or householders, and 
any person or persons who shall make any false statements 
of such damages, shall upon conviction be fined in any sum, 
not exceeding one hundred dollars, to which shall be added 
imprisonment in the county jail, for any term not exceeding 
thirty days: Provided, however, That no appraisement 
shall exceed the actual cash value for which such live stock 
or fowls would have sold for if placed on the market at the 
time such damage was sustained : Provided, further, That 
if any township trustee deems the appraisement of such 
live stock or fowls so killed or maimed to be excessive he 
shall tender to the owner or owners, or credit upon his' 
books such amount which in his judgment is equal to the 
injuries sustained and if in any action at law by the owners 
thereof for the recovery of such damages, said owner shall 
fail to recover a judgment exclusive of costs for an amount 
greater than the amount so tendered the defendant shall 
recover costs of such suit. 

Register of Claims — Surplus Funds. 

Par. 57. (3270). The trustee shall register all losses 
in the order in which they are reported : Provided, That no 
person shall receive pay for sheep, horses, cattle, swine or 
other live stock or fowls killed or maimed by any dog or 
dogs owned or harbored by himself: Provided, further, 
That the dog fund heretofore collected shall be added to 
and applied with the fund arising under the provisions of 
this act. And when it shall so occur on the first Monday in 
March of any year in any township in the state of Indiana 
that said fund shall accumulate to an amount exceeding one 
hundred dollars over and above orders drawn on the same, 
the surplus aforesaid shall be paid and transferred to the 
county treasurer of the county in which such township is 



17 

located and the fund arising from such surplus from the 
township of the county shall constitute a county dog fund 
and shall be distributed among the townships of the county 
in which the orders drawn against the dog fund exceed the 
money on hand. This distribution shall be made on the 
second Monday in March of each year, and if said county 
dog fund be insufficient to pay for all the live stock or fowls 
maimed or killed by dogs of all the townships the distribu- 
tion shall be made in the ratio of the orders drawn against 
the dog fund of the townships and unpaid and unprovided 
for, which ratio shall be obtained from the report of the 
trustees of the townships made to the auditor of the county 
which it is hereby directed shall be made by each township 
trustee of the county upon the first Monday of March of 
each year, which report shall show all receipts into the dog 
fund of his township, and all orders drawn against the 
same in the order in which they were drawn. And when it 
shall occur upon the second Monday in March of any year 
that there is a surplus left of the county dog fund after- 
provisions have been made for the payment for all the live 
stock or fowls killed or maimed, of all the townships of the 
county, such surplus shall be distributed for the schools of 
the county in the same manner the common school revenue 
of such county is distributed. 

The Library Fund — Statutes Authorizing Tax for. 

Pae. 58. The library fund is derived from such taxes 
as may be levied for the benefit of libraries designed for 
township use. The authority for levying township taxes 
for library purposes and the manner of using the money re- 
sulting therefrom are set out in the statutes, viz.. Sections 
4905 to 4910, 4913 to 4915, 4918, 4924, Rev. Stat. 1908 and 
Acts of 1909, p. 337, to all of which reference can be had for 
specific information. 

AS TRUSTEE OF THE SCHOOL TOWNSHIP. 

Duty as to School Property and Fund. 

Pae. 59. In his capacity as trustee of the school town- 
ship it is the duty of the trustee to manage all school prop- 
erty except congressional township school lands, which arc 
controlled by him as trustee of the civil township, and to 

[3- 



18 

administer all funds having relation to the public schools. 
These funds, what constitutes them and the purposes for 
which they can he used are set out below. 

The Tuition Fund— Of What Composed. 

Par. 60. The tuition fund is composed of each town 
ship's distributive portion of the state tax for tuition pur- 
poses and of the state common school tuition fund and the 
local tuition tax. The state tuition funds are apportioned 
to the townships on the second Monday in July and the last 
Monday in January of each year. The local tuition tax is 
paid to the trustee, with other taxes, by the county treas- 
urer immediately after each semi-annual settlement with 
the auditor. No part of the tuition fund can be taken to 
pay cost of collection. 

Disbursement of Tuition Fund — Teachers' Wages — Trans- 
fer Costs. 
Par. 61. The tuition fund is to be used for the payment 
of teachers' wages and for no other purpose. Except that, 
in the discretion of the trustee^ transfer costs may be paid 
from either the township, special school or tuition fund by 
authority of an act of 1909. (Acts 1909, p. 322.) Schools 
must be maintained for a term of six months in each school 
district and the local tuition levy must be sufficient for this 
purpose when added to the state tnition revenues. (Sec- 
tion 6411, Eev. Stat, 1908.) 

Teachers' Contracts — Rate of Wages. 

•Pae. 62. It is the duty of the trustee to make contracts 
with all teachers employed for service beginning in his term 
of office and not otherwise, such contracts to be entered in 
and signed in a record of blank contracts to be provided 
for that purpose. (Sections 6593, 6594 and 6595, Eev. Stat. 
1908.) It is unlawful to pay a teacher less wages than the 
rate fixed by law. (Section 6601, Eev. Stat. 1908.) Under 
the act of 1907, in force since August 1, 1908 (Section 6599, 
Eev. Stat. 1908), the lowest rate to be paid to teachers is a^ 
follows : 

Minimum Wages of Teachers. 

Pak. 63. (6599.) That the daily wages of teachers for 
teaching in the public schools of the state shall not be less. 



19 

in the case of beginning' teachers, than an amonnt deter- 
mined by multiplying 2^ cents by the general average given 
such teacher in his highest grade of license at the time of 
contracting. For teachers having had a successful experi- 
ence for one year of not less than six months, the daily 
wages shall not be less than an amount determined by mul- 
tiplying 3 cents by the general average given such teacher 
on his highest grade of license at the time of contracting. 
For teachers having had a successful experience for three 
or more school years of not less than six months each, the 
daily wages shall be not less than an amount determined by 
multiplying 3^ cents by the general average given such 
teacher on his highest grade of license at the time of con 
tracting. All teachers now exempt or hereafter exempt 
from examination shall be paid, as daily wages for teaching 
in the public schools, not less than an amount determined 
by multiplying 3 cents by the general average of scholar- 
ship and success given such teacher: Provided, That the 
grade of scholarship accounted in each case be that given 
at the teacher's last examination, and that the grade of suc- 
cess accounted be that of the teacher's term last preceding 
the date of contracting: And, providing further, That 2 
per cent, shall be added to the teacher's general average of 
scholarship and success for attending the county institute 
the full number of days, and that said two per cent, shall 
be added to the average scholarship of beginning teachers. 

Deficiency in Tuition Fund — How Supplied. 

Par. 64. AVhenever the state and local tuition revenues 
are not sufficient to maintain the schools for the period re- 
quired by law, the deficiency may be supplied by the state, 
in the manner provided for. (Sections 6434-6439, Rev. Stat. 
1908.) When the tuition funds are exhausted the special 
school fund may be called on to supply a deficiency. (Sec- 
tion 6441, Rev. Stat. 1908.) 

The Special School Fund — Derived from Tax. 

Par. 65. The special school fund is derived from a tax 
levied upon the taxable property and polls of the township 
and is received from the county treasurer at the same time 
the trustee receives other taxes collected. 



20 

Disbursement of Special School Fund — Township Institute. 
Pah. 66. From this fund must be paid all school ex- 
penses not provided for by the tuition fund, such as the con- 
struction, renting- or the repairing of school houses, provid- 
ing furniture, school apparatus and fuel and for the pay- 
ment of other necessary expenses of the schools, including 
tuition and teachers' salaries whenever in any current year 
the tuition funds shall have been exhausted. (Section 6441, 
Rev. Stat. 1908.) The day's wages allowed teachers by law 
for attending the township institute is payable out of the 
special school fund. 

Cost of Transfers. 

Par. 67. The cost of transfers may be paid out of either 
this fund or the township or tuition fund, in the discretion 
of the trustee. This cost is based on the per capita expense 
for the year, or part of a year; it can not exceed $4 per 
month in high schools or $2 per month in the grades and is 
payable before August 1. (Acts 1909, p. 322, 331.) Trans- 
fer costs received by a trustee should be credited to the tui- 
tion fund. 

Janitors and Drivers — Employment and Pay of — Transpor- 
tation of Pupils. 

Par. 68. Janitors are to be paid out of the special 
school fund and the trustee must provide such janitor help 
as may be necessary. (Section 6412, Rev. Stat. 1908.) In 
employing janitors no bids are necessary. Transportation 
of pupils must be paid for out of the special school fund. 
This includes the cost of a proper conveyance and the wages 
of a safe and suitable driver. In the purchase of wagons, 
as in the purchase of other school supplies, 'bids should be 
received after legal notice. In hiring a driver the trustee is 
not required to receive bids, but must use his discretion. 
(Section 6423, Rev. Stat. 1908.) 

Expense of School Enumeration. 

Par. 69. The enumeration of school children which each 
township trustee is required to take or cause to be taken 
betweeu the 10th and 30th days of April each year must be 
paid for out of the special school fund. The person taking 
the enumeration shall be allowed a reasonable compensa- 
tion per day for his services. (Section 6447, Rev. Stat. 
1908.) 



21 

Expense of Examination of School Accounts. 

Pae. 70. Expense of examinations made of the accounts 
of the school township by the Department of Inspec- 
tion and Supervision of Public Offices will be deducted by 
the county auditor from the special school fund at the next 
ensuing settlement. (Acts 1909, p. 136, Sec. 14.) 

THE MANNER OF EXPENDITURES. 

Township Business — Law Governing. 

Pae. 71. In 1899 the Legislature, by an act relating to 
township business, created a township advisory board and 
provided for estimates of expenditures and the levy and 
appropriation of taxes. This law as it now stands, with 
amendments, is set out in full in later pages as an appendix. 
It is not necessary, therefore, at this place, to do more than 
give the leading features of the advisory board act, with 
such explanations as seem important. 

Advisory Boards Annual Meeting. 

Pae. 72. The advisory board must assemble on the first 
Tuesday of September each year in annual meeting, at a 
convenient place in the township. Two members shall con- 
stitute a quorum. (Section 9590, Rev. Stat. 1908.) 

Notice of Annual Meeting — Time of Giving — Trustee's 
Estimates. 

Pae. 73. Notice of the meeting must be given by the 
trustee at least 30 and not more than 40 days before it is 
to be held by posting and publishing as required by the act 
a statement of the several estimates and amounts of the 
proposed annual expenditures and the rates of taxation 
proposed for levy for the different funds during the ensu- 
ing calendar year. This notice should be posted and pub- 
lished on the last Monday in July. At the same time the 
trustee must furnish to each member of the advisory board 
a statement of such estimates and amounts. The statement 
must contain a notice of the place of meeting of the board 
and must be substantially in the form prescribed by statute. 
The trustee must also procure and lay before the board at 
the annual meeting the assessed value of the taxable prop- 
erty of the township for such year and the number of tax- 
able polls therein. (Section 9592, Rev. Stat. 1908.) 



22 

Right of Taxpayer to Appear. 

Pae. 74. Any taxpayer has the right to appear and be 
heard as to any matter being considered by the advisory 
board. (Section 9591, Rev. Stat. 1908.) 

Itemized Statement by Trustee. 

Par. 75. At the annual meeting the trustee must attend 
and present a detailed and itemized statement in writing of 
his estimated expenditures for which appropriations are 
asked; a list of all property and supplies for all purposes 
on hand; the condition of pauperism in the township — all 
fully and in detail as required by the statute. The trustee 
must answer such inquiries concerning the expenditures of 
his office as the board or taxpayers present deem proper to 
make. (Section 9593, Rev. Stat. 1908.) The advisory 
board has power to require any estimate not sufficiently 
itemized by the trustee and to appropriate for any purpose 
a sum not greater than that estimated in the item therefor. 
By unanimous vote, however, and not otherwise, an appro- 
priation may be made for an item not contained in any esti- 
mate, or for a greater amount than that named in any item 
of an estimate. (Section 9593, Rev. Stat. 1908.) 

Fixing Rates of Taxation — Appropriation. 

Pae. 76. When the advisory board has determined 
upon the estimates and amounts for which taxes should be 
levied for the ensuing year, it must then fix the rates of 
taxation upon property and polls as to the estimated pur- 
poses severally, and certify such rates to the county audi- 
tor, who shall place the same upon the tax duplicate to be 
collected as prescribed by law. Such rates are deemed a 
levy and lien from March 1st of such year and constitute an 
appropriation for the specific purposes for which the esti- 
mates are fixed. (Section 9590, Rev. Stat. 1908.) 

Record to be Kept by Advisory Board. 

Pae. 77. The advisory board must keep a full record 
of its proceedings in a separate book to be furnished by the 
trustee for that purpose. This book is known as the record 
of the advisory board. It is a part of the records of the 
township and remains in the custody of the chairman of the 
board. It is the dutv of such board to elect one of its mem- 



23 

bers secretary and he must record the proceedings at any 
meeting in full under the direction of the board and the 
board must sign the record before it adjourns from day to 
day until the business is completed. (Section 9590, Rev. 
Stat. 1908.) 

Emergency Expenditures — Borrowing Money. 

Pae. 78. Under the amendment of 1909 (which will be 
found in the township act printed in the appendix) a spe- 
cial meeting of the advisory board may at any time be 
called in the manner therein provided to determine whether 
an emergency exists for the expenditure of any sums not 
included in the existing estimates and levy. If an emer- 
gency is found to exist, the board, by special order entered 
and signed upon the record, may authorize the trustee to 
borrow a sum of money to be named sufficient to meet such 
emergency; and at the next annual session of the board a 
lew must be made to the credit of the fund for which such 
expenditure is made to cover and pay the debt so created. 
(Acts 1909, p. 208.) 

Construction of School Building — Bonds or Warrants, 

Pae. 79. Under the same amendment of 1909 it is pro- 
vided that if at any annual or special meeting of the advi- 
sory board it is found to be indispensably necessary to pro- 
vide for the construction of a school building the cost of 
which (or the proportionate cost if it be a joint graded high 
school building) will be greater than the sum available for 
such purpose out of any annual levy, such board may au- 
thorize the trustee to issue township warrants or bonds to 
pay for such building or the proportionate cost thereof. 
Such warrants or bonds cannot run to exceed fifteen years 
nor bear interest greater than six per cent, and a fixed part 
must be paid off each year by a tax levied for that pur- 
pose. (Acts 1909, p. 208.) 

Creation of Debt — Advisory Board Must Authorize — 
Trustee's Liability. 
Pae. 80. The amendment of 1909 further provides that 
in no event shall a debt of the township be created except 
by the advisory board, and in the manner therein specified, 
and any payment from the public funds of any debt not so 



24 

authorized may be recovered upon the bond of the trustee 
in an action by the advisory board, or on its failure to act 
for thirty days after written demand of any taxpayer, then 
by an action brought by any taxpayer. (Acts 1909, p. 208.) 

PURCHASE OF SUPPLIES. 

General Suggestions. 

Par. 81. The matter of township supplies, both civil 
and school, is one of the greatest importance. In the ag- 
gregate, the expenditures of the township trustees of the 
state for supplies of different kinds amount to a very large 
sum annually. To the end that there may be no unneces- 
sary purchases it is the duty of each trustee to see that there 
is no needless waste and that all articles belonging to the 
township are properly used and protected. At the close of 
the schools, teachers should be required in their report to 
make an itemized and detailed statement as to the amount 
and condition of all property, furniture and materials 
under their supervision and the probable needs for the next 
school term. Road supervisors, drivers of school wagons 
and school janitors should be required to properly protect 
all property in their charge or under their supervision. By 
reports from all persons using township property and by 
personal inspection and inquiry the trustee will be able to 
make an intelligent estimate of the township needs. 

School Supplies — Estimate and Classification. 

Par. 82. If the trustee desires to purchase any school 
furniture, wagons, fixtures, maps, charts or other school 
supplies (excepting fuel and literary periodicals, as may be 
authorized by the advisory board) he must make an esti- 
mate of the kinds and amounts, itemized particularly and 
properly classified, to be used by bidders upon the giving of 
public notice. The only exception made by the statute is as 
to fuel and literary periodicals ; all other supplies must be 
purchased after notice and bids. (Section 9598, Rev. Stat. 
1908.) 

Other Supplies — Road Machinery, Bridge Materials, Etc. 
Par. 83. A like course should be followed by the trus- 
tee in the purchase of all other supplies and materials for 



25 

township use wherever practicable. Especially is this re- 
quired in buying road machinery and tools of all kinds and 
bridge and culvert materials. It may also be advisable in 
some instances to buy gravel, stone or other road-making 
materials by notice and competitive bidding. 

BUILDINGS AND BRIDGES. 

Construction of School House — Plans and Specifications. 
Par. 84. If the trustee finds it necessary to erect a new 
school house, he must procure suitable plans and specifica- 
tions therefor to be used by the bidders in bidding and in 
the construction of such house. (Section 9598, Rev. Stat. 
1908.) The plans and specifications, as to sanitary ar- 
rangements, must be in accordance with the rules of the 
State Board of Health. 

Repair of School House — Current and Incidental Repairs. 

Par. 85. If it is necessary to make repairs on or about 
school houses, other than current or incidental repairs, the 
trustee must make an itemized statement of the nature and 
character of the work for the use of bidders. (Section 
9598, Rev. Stat. 1908.) The current and incidental repairs 
which the trustee is authorized to make without notice and 
bids relate to such matters as broken vvdndows, doors, heat- 
ing apparatus and other things likely to occur from day to 
day and requiring immediate repair. 

Construction and Repair of Bridges — Specifications for 
Bidders. 

Par. 86. When bridges are to be constructed or re- 
paired in a township in any year the trustee, under the town- 
ship act of 1899 (Section 9598, Rev. Stat. 1908), must make 
for the use of bidders a sufficient schedule and such specifi- 
cations of such work as may be necessary. 

Improvement and Repair of Highways and Bridges — 
Notice to Bidders. 
Par, 87. Under Sections 111 and 112 of the general 
highways act of 1905 (Sections 7781 and 7782, Rev. Stat. 
1908) the township trustee may let to the lowest respon- 
sible bidder the improvement or repair of highways, 

[4—22689] 



26 

bridges and culverts in the township, under regulations 
prescribed by him. Notice of the time and place of receiv- 
ing bids must be posted in three of the most public places 
in the township. 

NOTICE, BIDS AND CONTRACTS. 

Notice, How Given. 

Par. 88. Under the township act of 1899 (Section 9598, 
Rev. Stat. 1908) it is provided that all contracts shall be let 
after notice by posting for three weeks in five of the most 
public places in the township and also at or near the door 
of each postomce therein, stating briefly the buildings, re- 
pairs or supplies sought to be let and when and where bids 
will be received and opened. If the contemplated expendi- 
ture in any class (buildings being one class, repairs a class, 
supplies a class, and so on) shall be $500 or more, in addi- 
tion to the posting there must be a publication of the notice 
one time in two leading newspapers of the county repre- 
senting the two political j)arties casting the highest number 
of votes in such county at the last preceding general elec- 
tion. If there is a newspaper published in the township 
one of such notices must be published in it. 

Bids, Receiving and Action on. 

Par. 89. All bids must be in writing and must be 
opened and read publicly at the time and place fixed in the 
notice. The trustee may take time to examine and satisfy 
himself as to which is the lowest and best bid and must ad- 
vise with the advisory board thereon. The advisory board 
must be present at the letting and has authority to reject 
any and all bids. When action has been taken, the trustee 
must endorse on the bids whether rejected or accepted and 
must preserve the bids in his office. (Section 9598, Rev. 
Stat. 1908.) 

Contracts, How Let. 

Par. 90. When a bid is accepted a proper contract in 
writing, signed by the trustee and the successful bidder, 
must be entered into for such building, bridge construction, 
repairs or supplies, as the case may be. AH the work or 
supplies in any one class must be included and let in a 
single contract.' (Section 9598, Rev. Stat. 1908.) 



27 

Non-Collusion Affidavit and Bond. 

Par. 91. All bids must contain the statement and affi- 
davit set out in "Form 9" prescribed by the State Board 
of Accounts; and when a contract has been entered into 
the trustee must require the bidder to give bond, with 
security to be approved by him, for the faithful execution 
of such contract. (Section 9598, Rev. Stat. 1908.) 

When Contract is Void. 

Par. 92. Any contract made in violation of the town- 
ship act of 1899 and its amendments is null and void. (Sec- 
tion 9601, Rev. Stat. 1908.) 

REPORTS AND SETTLEMENTS. 

School Report to County Superintendent — When Made. 
Par. 93. The school year begins August 1st and ends 
July 31st, Formerly the trustee was required to make to 
the board of county commissioners annually, on the first 
Monday of August, a financial report of the special school 
and tuition funds for the preceding school year. Now, how- 
ever, the only report that the trustee makes on the first 
Monday of August for the school year ending July 31st is 
made to the county superintendent. This report is for the 
information of the county superintendent and the state 
superintendent of public instruction and relates to school 
property and funds, receipts and expenditures, tax rates, 
teachers and pupils, etc. A form for this report is pre- 
pared by the state superintendent and distributed to the 
trustees through the countv superintendent. (Section 6425, 
Rev. Stat. 1908.) 

Annual Financial Report and Settlement — When and How 
Made. 

Par. 94. The trustee's annual report and settlement is 
provided for by the township act of 1899, as amended in 
1901, which will be found in full in the appendix. Briefly 
stated, the requirements as to the report are as follows: 

The report must be presented to the advisory board at 
an annual meeting to be held on the first Tuesday 
after the first Mondav in Januarv. Where, how- 



28 

ever, the trustee's term expires before that date, or 
he shall die or resign, then he or his administrator, 
as the case may be, shall at once make final settle- 
ment with the board. 

It must be a complete report of all receipts and expen- 
ditures for the preceding calendar year, with the bal- 
ance to the credit of each fund. 

If the trustee has any money from any source on his 
hands or under his control which is not included in 
any particular fund, as shown by his report, all facts 
concerning such money must be stated. 

Each item of expenditure must be accompanied by a 
verified voucher, signed by the person receiving the 
money. The form of this voucher has been pre- 
scribed by the State Board of Accounts. The trus- 
tee is empowered to administer the oath to the per- 
son signing the voucher. 

The report must be verified by the oath of the trustee 
showing that the sums with which he is charged in 
the report are all the sums received by him; that the 
various items of expenditure credited have been 
fully paid in the sums stated, without any agreement 
that any portion thereof shall be retained by or re- 
paid to him or to any other person; and that such 
trustee has received no money nor article of value 
in consideration of any contract made by him as such 
trustee. 

Duty of Advisory Board. 

Pae. 95. The advisory board shall consider the trus- 
tee's report when it is presented to such board and 
approve it in whole or in part. 

Any sum appropriated and remaining in the hands of 
the trustee, unexpended, and for which no liability 
exists against the township, must be deemed and 
credited in favor of the fund for which it was appro- 
priated, and must be considered in the ensuing levy. 

The expenditure of any fund, in whole or in part, to any 
account for which it was not appropriated by the ad- 
visory board must be deemed by such board as a bal- 
ance of such fund unexpended and still in the hands 
of the trustee, for which he is liable on his bond. 



29 

Any member of the advisory board may administer 
oaths, and the board may send for persons, books 
and papers, if necessary, in the examination of the 
trustee's report; and when the examination is closed 
the board must enter of record its action on the re- 
port, specifically stating such parts and items as may 
be altered or disallowed. 

The trustee's report shall remain nnder the control of 
the advisory board and in the custody of the chair- 
man of such board a,nd may be inspected at any time 
by any taxpayer of the township. The vouchers ac- 
companying the report, -however, mnst be filed witli 
the county auditor. 

Copy of Report to Auditor — Time of Filing and Penalty. 
Par. 96. After the annual settlement has been made, 
the trustee must, within ten days thereafter, file a 
copy of his report as adopted by the advisory board, 
with the accompanying vouchers, in the office of the 
county auditor, to be preserved. If the copy is not 
so filed within ten days the trustee is subject to a for- 
feiture of $5.00 for each day's delay, to be collected 
by the advisory board for the benefit of the township. 

Auditor's Duty to Examine Trustee's Report. 

■Par. 97. The auditor must examine the copy of the re 
port filed with him and within ten days after such 
filing must report to the advisory board the result of 
such examination, including his finding as to the ac- 
curacy of the report. 

Publication of Report — Penalty for Failure. 

Par, 98. Under an act of 1907 (Section 9573, Rev. Stat. 
1908, printed in the appendix) the township trustee, 
within four weeks from the time of filing his annual 
report, must cause the receipts and expenditures by 
items, as they appear in such report, to be given 
newspaper publication as in said section provided. 
If the trustee fails to make such publication the 
county auditor shall cause it to be done. Each news- 
paper publishing the same shall be entitled to five 
cents for each item of such receipts and expenditures, 



30 

to be paid out of the township fund and not more 
than one item shall be printed in one line. For a 
failure to make publication of the report a fine of 
$25.00 is provided. (Section 9574, Eev. Stat. 1908.) 
Townships having- a -population of 100,000 inhabitants 
or more are excepted from the above requirements 
and must cause publication to be made under Section 
9597. Eev. Stat. 1908. 

Overseer of Poor — Report and Settlement. 

Par. 99. As overseer of the poor of his township the 
trustee must make settlement with the board of county com- 
missioners ^annually during the first ten days of January, 
or oftener if such board shall so direct, of all poor relief 
for the past year and file all vouchers therefor as required 
by law. (Section 9771, Eev. Stat. 1908.) 

Supervisor's Report and Settlement. 

Par. 100. The supervisor must report to the trustee all 
fines and commutation money due his district and the same 
must be collected by the trustee (Section 7763, Eev. Stat. 
1908), and on or before December 1st, each year, must file 
his report with the trustee and pay to him all commutation 
and other money remaining in his hands. The trustee must 
audit the report and compel payment of such money. (Sec- 
tions 7789, 7790 and 7769, Eev.' Stat. 1908.) 

Assessor's Report and Settlement of Dog Tax. 

Par, 101. Within five days after completing the town- 
ship assessment, the township assessor must report to the 
trustee all money received by him as dog tax and turn over 
to the trustee such money and all records relating to the col 
lection of such tax and a copv of all receipts issued there- 
for. (Sections 3258 and 3259, Eev. Stat. 1908.) 

SALARIES AND WAGES. 

Trustee's Per Diem— As Trustee and Overseer. 

Par. 102. In townships where trustees are paid a per 
diem, the trustee shall be paid for all services officially ren- 
dered by him, whether as trustee or as overseer of the poor, 
the sum of two dollars per day. This is the full compensa- 



31 - 

tion for all services and in no event can the trustee receive 
more than two dollars per day for any one day's services 
in whatever capacity performed. (Section 9769, Rev. Stat. 
1908.) Where, therefore, the trustee receives pay from the 
county as overseer of the poor, he cannot receive pay from 
the township as trustee for the days on which he served and 
was paid as overseer. Likewise he can make no charge 
against the township for services on days given to superin- 
tending ditch repairs under the act of 1907. (Sections 6157 
and 6158, Rev. Stat. 1908.) 

Allowance by Advisory Board. 

Par. 103. The trustee who receives per diem and not 
salary must file with the advisory board at its annual meet- 
ing in January an itemized statement, verified by his oath, 
of his services as trustee and such board shall fix and allow 
the number of days for which the trustee is entitled to be 
paid, and he is entitled to no other compensation for his 
services as trustee. (Section 9600, Rev. Stat, 1908.) 

Trustee's Salary — How Graded — Continuous Service. 

Par. 104. Trustees who are paid an annual salary must 
keep their offices open each day of the year except Sunday 
and legal holidays and must perform all the services re- 
quired of them both as trustee and as overseer of the poor 
without additional compensation. Salaries are fixed as fol- 
lows : In townships having a population over 25,000 and 
under 75,000, as shown by the last census, not less than 
$1,000 nor more than $1,500, to be determined by the board 
of county commissioners; in townships over 75,000 and 
less than 100,000 the salary is $1,800; in townships over 
100,000 the salary is $2,500." (Sections 9588, 9589 and 9769, 
Rev. Stat. 1908.) 

Supervisor's Per Diem— Limit of Days. 

Par, 105. The road supervisor is entitled to two dol- 
lars per day for services actually performed, not exceeding 
sixty days in any one year; but before receiving pay he 
must file a sworn statement with the trustee, specifying 
the days and roads upon which services were performed. 
He is entitled to no compensation for days that he should 
work on roads as other qualified persons in his district. 
(Section 7763, Rev. Stat. 1908.) 



32 

Pay of Advisory Board. 

Par. 106. The pay of the advisory board is nominal, 
being not more than live dollars a year for each member. 
If the board desires this compensation it must be added to 
the levy for the township fund, out of which it is paid. 
(Section 9594, Rev. Stat. 1908.) 

For Taking School Enumeration. 

Pae. 107. Each person taking and returning the school 
enumeration required by Section 6-147, Rev. Stat. 1908. 
shall be allowed by the township school trustee reasonable 
compensation per diem for his services, to be paid out of 
the special school fund of the township. 

Wages of Teachers. 

Par. 108. The minimum wages to be paid teachers in 
the public schools is fixed by law and is graded according 
to length of service, successful experience and scholarship. 
The law relating to the employment and pay of teachers is 
set out, ante, under the subject of tuition fund expendi- 
tures. 

Janitors and Drivers. 

Pae. 109. School janitors and drivers of school wagons, 
as provided by Sections 6412 and 6423, Rev. Stat. 1908, 
respectively, must be employe:! by the trustee wherever nec- 
essary and paid out of the special school fund. The com- 
pensation of these persons is not fixed by law and rests in 
the sound discretion of the trustee. Only safe and suitable 
persons should be employed in these capacities and bids are 
not required. 

Payment of State Examiners. 

Pae. 110. The per diem and railroad fare of examiners 
for making examinations of township accounts under the 
Public Accounting law are payable in the first instance out 
of the county treasury, the county being reimbursed out 
of township taxes at the ensuing semi-annual settlement. 
The expense of examining civil township accounts is de- 
ducted from the township fund and that of school accounts 
from the special school fund. (Acts of 1909, p. 146, Sec- 
tion 14.) 



o 



33 



PENALTIES. 

Under Depository Law. 

Pae. 111. Under the head ' k The Maimer of Handlin 
Funds" the requirements of the Public Depository Act 
with respect to the deposit and paying out of township 
funds are explained. A failure to make deposits according 
to the statute and drawing checks contrary to its provisions 
are deemed acts of embezzlement and involve, upon convic- 
tion, a fine* prison sentence, removal from office and lia- 
bility on the officer's bond. (Section 7545, Rev. Stat. 1908.) 

Unlawful Interest in Public Contracts. 

Par. 112. A township trustee who shall be interested 
in any contract for the construction of a school house, 
bridge or public building or work of any kind erected or 
built for the use of the township, or who shall bargain for or 
receive any percentage, draw-back, premium or profits or 
money on any contract or for the letting of any contract, or 
making any appointment wherein the township is concerned 
is subject, upon conviction, to fine, imprisonment in the 
state prison and disfranchisement. (Section 2423, Rev. 
Stat. 1908.) 

Refusal to Pay Just Claim. 

Pak. 113. If any township trustee unlawfully refuses 
to pay a just claim or demand against any fund of the town- 
ship, when the money belonging to such fund is in his hands', 
he is subject, upon conviction, to a fine of not less than ten 
nor more than fifty dollars. (Section 2424, Rev. Stat. 1908.) 

Extortion and Official Negligence. 

Par. 114. Any public officer who demands or receives 
any fee or reward, other than is allowed by law, for doing 
his official duty, or charges, asks or receives a greater fee 
than is allowed by law, or requires any division of fees of 
a deputy appointed by him, or fails to perform any duty in 
the manner and within the time prescribed by law, is sub- 
ject, upon conviction, to a fine and imprisonment in jail for 
a first offense and state prison and disfranchisement for a 
second. (Section 2389, Rev. Stat. 1908.) 



34 

For Failure to Account. 

Pae. 115. Any public officer who fraudulently fails or 
refuses, at any time during the term for which he was 
elected or appointed, when legally required by the proper 
person or authority, to account for, deliver and pay oyer 
to such person or persons as may be lawfully entitled to 
receive the same, all moneys, choses in action, or other prop- 
erty which may have come into his hands by virtue of his 
office, is deemed guilty of embezzlement, and the penalty on 
conviction is a fine, imprisonment in state prison and dis- 
franchisement. (Section 2283, Eev. Stat. 1908.) 

Diversion of Funds. 

Pae. 116. Any public officer who knowingly diverts, ap- 
propriates or applies any funds or a part of any fund, or 
money borrowed on bond, to any other use than that for 
which it was raised, appropriated or borrowed, is deemed 
guilty of embezzlement, and the penalty on conviction is a 
fine, imprisonment in the state prison and disfranchisement. 
(Section 2292, Rev. Stat. 1908.) 



APPENDIX 



THE ADVISORY BOARD LAW. 

[The section references are to Burns' Revised Statutes 1908. J 

Advisory Board — Election — Duties. 

9590. At the time of electing township trustees the voters of the sev- 
eral townships shall elect an advisory board, consisting of three (3) resi- 
dent freeholders and qualified voters of the township. The members of 
such board shall subscribe and file with the trustee an oath to faithfully 
and honestly discharge their duties as prescribed by law. Their terms of 
office shall be for two years from the day following their first election and 
until their successors are elected and qualified, and the term of office shall 
thereafter be for the term of four years from the day following their election 
and until their successors are elected and qualified. If a vacancy occurs 
in said board it shall be filled by the remaining members of the board for 
the unexpired term. They shall meet annually on the first Tuesday of 
September, at a convenient place in the township, notice of which shall be 
given as hereinafter provided in section 3. At such annual meeting the 
members of such board shall elect one of their members chairman for that 
year. Two (2) members shall constitute a quorum. At such meeting the 
board shall consider the various estimates of township expenditures pro- 
posed by the township trustee, and shall have power to concur in such 
estimates, or in any part thereof, or to reject any proposed item, in whole 
or in part. Any existing indebtedness need not be paid until due. And 
the advisory board, at the first annual meeting, may apportion the pay- 
ment of any existing indebtedness other than to the county or for current 
expenses for a named term not exceeding five years. When they shall have 
determined upon the estimates and amounts for which taxes should be 
levied upon the property and polls within said township for the ensuing 
year, they shall then determine and fix the rates of taxation upon such 
property and polls as to the estimated purposes severally. The rates so 
determined by such board, they shall then certify to the county auditor, who 
shall place the same upon the tax duplicate, and the same shall be collected 
and enforced as prescribed by law. The rates so prescribed shall be deemed 
a leyy and lien upon the property of such township from and after the firsi 
day in April [now Marehl of such year, and such levy shall be deemed an 
appropriation for the specific purposes for which such estimates are fixed. 
Such board shall keep a record of their proceedings in a separate book to be 
furnished by such trustee, and kept as a part of the records of the town- 
ship, to be known as the record of the advisory board of such township. 
and to remain in the custody of the chairman of such board. Said board 
shall elect one of its members secretary for said board, who shall record 
the proceedings thereof at any meeting, in full, under the direction of the 
board, which shall be signed before the board adjourns. Any meeting may 
adjourn from day to day till the business is completed. 

-35- 



36 
Attendance and Hearing of Taxpayers. 

9591. At any session of such board, any taxpayer of the township 
may appear and be heard as to the advisability of any estimate or esti- 
mates of expenditures, or any proposed levy of taxes, or the approval of 
the township trustee's report, or any other matter being considered by 
the board. 

Notice of Annual Meeting — Estimates of Expenditures and Rates 
of Taxation. 

9592. The trustee shall at least thirty (30) days, and not more than 
forty (40) days, before the annual meeting of the advisory board, in each 
year, post at or near the door of all postoffices in the township, a state- 
ment of the several estimates and amounts of the proposed annual expendi- 
tures and the rates of taxation proposed for the levy against the property 
within such township, for the several funds to be expended for his town- 
ship during the calendar year, and also copies* of such notice shall be pub- 
lished one time in the issue printed in the first week of August of each 
year in the two leading newspapers published in the county, representing the 
two political parties casting the highest number of votes in such county at 
the last preceding general election, and one publication in a newspaper 
in the township interested, if there be a paper published therein. The 
cost of such publication shall not exceed two dollars in any one year to 
any one paper, and the cost of necessary copies for posting and delivery 
to the board shall not exceed one dollar and fifty cents in any one year. 
And he shall furnish within like periods to each of the members of the 
advisory board a statement of such estimates and amounts. Such state- 
ment shall contain a notice of the place of meeting of the advisory board, 
and shall be substantially in the following form : 



EXPENDITURES AND TAX LEVIES FOR THE YEAR 



The trustee of . . township," county, 

proposes for the yearly expenditures and tax levies by the advisory board 
at its annual meeting to be held at the school house of school district No. 
the following estimates and amounts for said year: 

1. Township expenditures, $ , and township tax, cents 

on the hundred dollars. 

2. Local tuition expenditures. .$ , and tax, cents on the 

hundred dollars. 

3. Special school tax expenditures, $ , and tax, cents ou 

the hundred dollars. 

4. Road tax expenditures. $ , and tax, cents on the hun- 
dred dollars. 

5. Additional road tax expenditures, .$ and tax, cents 

on the hundred dollars. 

6. Library expenditures, $ and tax cents on the hun- 
dred dollars. 

7. Poor expenditures for preceding year. $ and tax, 

cents on the hundred dollars. 



37 

8. Other items, if any. expenditures. .$ and tax, cents 

on the hundred dollars. 

Total expenditures. % and total tax cents on the hun- 
dred dollars. 

( Signed) . . . , Trustee. 

(Dated) 

The trustee shall procure and lay before the advisory hoard, at the 
annual meeting thereof, the assessed valuation of the taxable property of 
the township for such year, and also the number of taxable polls, in such 
township. 

Estimates of Expenditures and .Appropriations — Must Be Item- 
ized, 

9593. The trustees shall attend all of the meetings of the advisory 
board, and at the annual meeting thereof, after 'the board shall have or- 
ganized, he shall present a detailed and itemized statement in writing of 
his estimated expenditures for which appropriations- are asked, specifying 
the number of teachers necessarily employed, their salaries respectively, 
the number of days deemed necessary for the discharge of the duties of 
his office, and the days of the week or month when they can be most ad- 
vantageously performed, the extent of needed bridge and highway repairs, 
an accurate, itemized list of all the property and supplies on hand, whether 
in use or in store, for road, school and other purposes and estimated value 
thereof, the items of school supplies necessary for each school, the con- 
dition of pauperism in the township, including the names of such persons 
as have received public aid, since the taking effect of this act, and since 
the last annual meeting of the board, with the respective amount received 
dv each person. And also the items, severally, to be charged against the 
township fund, including salaries, stationery, printing and records, and 
supplies to be furnished to the justices of the township, the trustee's com- 
pensation, and his office rent, where an office is authorized by the board, 
and any other items of expense payable from said fund ; and he shall sub- 
mit to such inquiries concerning the expenditures of his office as the board, 
or the taxpayers present, may deem proper to make. The advisory board 
shall have full power to require any estimate, not sufficiently itemized, to 
•be so itemized by the trustee, and to appropriate for any purpose a sum 
not greater than that estimated in the item therefor, except by the unani- 
mous vote of the board, and not otherwise, an appropriation may be made 
for an item not contained in any estimate, or for a greater amount than 
that named in any item of an estimate. 

Pay of Advisory Board. 

9594. In making the levies for the township fund, if said board shall 
desire compensation for their services to the township, they may add a 
sum not exceeding five ($5) dollars for the service of each member during 
the year for which the levy is made, payable out of such fund. 

Emergency Expenditures — Special Meeting of Board — Power to 
Create Debts. 

9595. (As amended by the Acts of 1909. p. 208. 209.) Upon a special 
call of the township trustee, or the chairman of the advisory board or a 



38 

majority of the members of said board, given in writing to each member 
thereof, stating the time, place and purpose of the meeting, said board may, 
if a quorum be present, by consent of a majority of all the members pres- 
ent, determine whether an emergency exists for the expenditure of any 
sums not included in the existing estimates and levy. In the event that 
such an emergency is found to exist said board may authorize by special 
order entered and signed upon the record, the trustee to borrow a sum of 
money to be named sufficient to meet such emergency ; and at the next 
annual session of the board a levy shall be made to the credit of the fund 
for which such expenditure is made to cover and pay the debt so created: 
Provided, hoicever. That if at any annual or special meeting of said board 
it shall be found indispensably necessary to provide for the construction of 
a school building, the cost of which building or the proportionate cost 
thereof if the same be a joint graded high school building will be in ex- 
cess of the sum available therefor out of any annual levy, then in that 
event, such board may authorize such trustee to issue township warrants 
or bonds to pay for such building, or the proportionate cost thereof, such 
warrants or bonds to run for a period of not exceeding fifteen (15) years; 
and to bear (interest at a rate) not exceeding six per centum per annum, 
and to be sold for not less than par ; and such board shall annually levy 
sufficient taxes to pay at least one-fifteenth of such warrants or bonds, with 
interest, each year, and the trustee shall apply such annual tax to the pay- 
ment of such warrants or bonds each year. In no event shall a debt of 
the township be created except by the advisory board of such township, 
and in the manner herein specified, and any payment of any debt not so 
authorized from the public funds of such township shall be recoverable 
upon the bond of the trustee in a suit, which it is hereby made the duty 
of said board to institute and prosecute in the name of the state, for the 
use of said township. And said board is hereby empowered to appro- 
priate, and the township trustee shall pay out of the township funds a 
reasonable sum for attorney's fees for such purpose. And if the board, on 
the written demand of any taxpayer, fails for thirty (30) days to bring 
suit, then such or any other taxpayer may bring the same, in the name of 
the state, for the use of the township: Provided, hoicever. Nothing con- 
tained herein shall affect any pending litigation. 

Financial Record — Duty of Trustee to Keep. 

9596. Each township trustee in this state shall procure and keep a 
book, to be known as the financial record of the township, in which the 
trustee shall keep an itemized and accurate account of the financial affairs 
thereof, charging himself with each sum of money when and as received, 
from every source, giving the date, from whom received, and on account 
of what fund it is credited. He shall likewise credit himself with all 
moneys when and as paid out, showing when, on what account, and to 
whom and out of what fund paid. It shall be the duty of the auditor of 
State of Indiana [this duty is now imposed upon the State Board of 
Accounts] to frame and adopt a form of such book, to be used by all the 
township trustees throughout the state. Such book shall be a public record. 
Provided, however. That the auditor [now the State Board of Accounts] 
shall not adopt any patented or copyrighted form and nothing herein shall 



39^ 

authorize him to contract with any person, partnership or corporation, for 
the publishing of such forms. r ; he act entitled "An act prescribing certain 
duties of township trustees, providing for the appointment and compensa- 
tion of an auditing board, prescribing its duties and declaring an emer- 
gency." approved March S, 1807, is hereby repealed. 

Annual Report and Settlement — Action Upon. 

9597. The trustee shall present to the advisory board, at a meeting of 
said board to be held annually on the first Tuesday after the first Monday 
of January of each year, his annual and complete report of all the receipts 
and expenditures of his office for the preceding calendar year, with the 
balance to the credit of each fund under his charge ; and if he has any 
money from any source in his hands or under his coutrol which is not 
included in any particular fund, as shown by said report, then he must 
state all the facts concerning such moneys in his report. Each item of ex- 
penditure shall be accompanied by the verified receipt of the person to 
whom the sum evidenced thereby has been paid, stating particularly for 
what article or service the payment has been made ; that the sum receipted 
for is the exact sum received, and that no part thereof has been retained 
by. or returned to or has been agreed, directly or indirectly, to be returned 
to the true-tee or to any other person, and the trustee is empowered to ad- 
minister oaths to the persons giving such receipts. The report so presented 
shall be verified by the oath of the trustee, showing that the sums with 
which he is charged in such report are all the sums received by him, and 
that the various items of expenditure credited have been fully paid in the 
sums stated, and without express or implied agreement that any portion 
thereof shall be retained by or repaid to him or to any other person. And 
the trustee shall subscribe and take oath that he has received no money 
nor article of value in consideration of any contract made by him as such 
trustee. The board shall consider and approve in whole or in part the re- 
port of the trustee so made, and any sum appropriated and remaining in 
the hands of the trustee, unexpended and for which no liability exists 
against the township, shall be deemed and credited in favor of the fund for 
which it was appropriated, and shall be considered in the ensuing levy. The 
expenditure of any fund, in whole or in part, to any account for which t 
was not appropriated by said board, shall be deemed by the board of (as) 
a balance of such fund unexpended and in the hands of the trustee, for 
which he shall be liable upon his bond. Any member of the board may ad- 
minister oaths, and said board may send for persons, books and papers, if 
necessary, in such examination of said report, and when the examination 
is closed they shall enter of record their action thereon, specifically stating 
such parts and items as may be altered or disallowed. Such annual report 
shall remain under the control of such board, the custody thereof to be 
held by the chairman and at any time shall be subject to inspection 
by any taxpayers of the township. On the said annual settlement being 
made, the trustee shall within ten (10) days thereafter, file a copy of such 
report as adopted by the board, with the accompanying vouchers, in the office 
of the county auditor, to be preserved; and upon failure the trustee shall 
forfeit five (5) dollars per day for each day until so died, to be colic, ted 
by suit of the h< ard for the benefit of the township. In case the term of 



40 

the trustee shall expire, or he shall resign or die. then he. or his adminis- 
trator, shall at once make final settlement with the board. Said auditor 
shall examine such copy of said report and within ten (10) days after the 
filing of same in his office, shall report to the advisory board of such town- 
ship the result of such examination, including Ids finding as to the accuracy 
of such report. Said trustee shall cause to be published, by one insertion 
in two leading newspapers of his county, each representing one of the two 
political parties casting the highest number of votes at the last preceding 
general election, an abstract of his said report, which abstract shall contain 
the total of receipts and expenditures and balances or deficits in each fund, 
also the rate of tax levy made for each of said funds for the ensuing year. 
(As amended. Acts 1901, p. 415. As to publication of report, see Section 
9573, Rev. Star. 1008. as set out in this appendix.) 

Building and Supplies — Notice and Bids — Specifications — Con- 
tracts. 

9598. If a trustee finds it necessnry to erect a new school house, he 
shall procure suitable specifications therefor, to be used by the bidders in 
bidding and in the construction (if such house. If he desires to purchase 
any school furniture, fixtures, maps, charts or other school supplies, except- 
ing fuel and literary periodicals in such amounts as may be authorized by 
the advisory board, in any year, he shall make an estimate of the kinds and 
amounts, itemized particularly, to be used by bidders therefor. If it is 
necessary to make repairs on or about the school houses, other than cur- 
rent or incidental repairs, he shall likewise make an itemized statement 
of the nature and character of the work, to be made for the use of bid- 
ders. He shall, in like manner, make a schedule of such work as may be 
necessary in the repair or construction of bridges in his township for any 
one year. All contracts shall be let. after notice given, by posting for 
three (3) weeks in five (5) of the most public places in the township, and 
also at or near the door of each postoftice therein, stating briefly the build- 
ings, repairs or supplies sought to be let. and when and where bids will 
be received and opened therefor ; and if the contemplated expenditures in 
any one class shall be five hundred ($500) dollars or more, he shall post 
notices as aforesaid, and also publish notice thereof for one (1) time in 
two leading newspapers published in the county representing the two po- 
litic;! 1 parties casting the highest number of votes in such county at the 
last preceding general election: Provided, That one of such publications 
shall be made in a newspaper published in the township in "crested, if there 
be a newspaper published therein. The advisory board shall attend the 
letting. At the letting, all the work or supplies in any one class shall be 
included and let in a single contract. All bids shall be in writing and be 
opened and read publicly at the time and place^ fixed in the notice. The 
trustee may take time to examine and satisfy himself as to which is the 
lowest and best bid, and shall advise with the advisory board thereon; 
and said board is hereby empowered to reject any and all bids. The trustee 
shall indorse on the bids whether rejected or accepted and preserve the 
same. When a bid is accepted, a proper contract shall then be reduced to 
writing for such building, repairs or supplies, as the case may be, and be 
signed by the successful bidder and the trustee, who shall require the 



41 

bidder to give bond with security, to be approved by him, for the faithful 
execution of such contract. 

Use of Funds Legalized. 

0590. That, where in any township or townships in the state of In- 
diana there was at the time when money was needed by said township, or 
townships, for building purposes a sufficient sum of money in the sinking 
fund for the necessary building purposes and no funds sufficient in the 
building fund of said township, or townships, and the trustee, without 
fraud, and in good faith, and with the consent and upon the advice of the 
advisory board of said township or townships has used the sinking fund in 
a judicious and legal manner for building purposes, and the said sinking 
fund at the time not being needed to pay off any bonded indebtedness, or 
interest on same, then the acts of said trustee and advisory board are 
hereby legalized and made valid, and said trustee shall not be liable upon 
his bond for the sum so used: Provided, That the provisions of this act 
shall not apply to or affect any pending litigation. (Act of 1907, p. 615.) 

Pay of Trustees. 

9600. The township trustees serving under this act shall receive for 
their services the compensation now or hereafter fixed by law : Provided, 
That where a per diem is allowed by law the number of days service for 
which the trustee is allowed shall be fixed and allowed by the advisory 
board at their annual meeting, and this shall constitute the entire com- 
pensation of such trustee for all the duties of his office. 

Contracts, When Void. 

9601. All contracts made in violation of this act shall be null and void. 



PUBLICATION. 

Publication of Receipts and Expenditures. 

9573. That all township trustees in the state of Indiana shall within 
four (4') weeks from the time of the filing of their annual report, as now 
provided for by law, cause to be published by one insertion in each of two 
leading newspapers of general circulation, printed and published in the 
county, each representing one of the two political parties casting the high- 
est number of votes in the last preceding election, the receipts and expen- 
ditures by items as they appear in the annual report of such trustee : Pro- 
vided, That where a paper is published in the township, the same shall be 
published in such paper, and one other in the county: Provided, That when 
there are two papers published in the township the report shall be pub- 
lished in both such papers and such publication shall be deemed in full 
compliance with the provisions of this act. And where said paper published 
in said township represents one of the leading political parties, then such 
report shall also be published in a newspaper published at the county seal. 
representing the other leading political party: Provided, hoivevev. That in 
counties not having two leading newspapers of opposite politics, as herein 
provided, such report must be published in some newspaper of general cir- 
culation, printed and published in said county. If any such trustee fails 
to make such publication, then the auditor of the county shall cause such 



42 

publication to be made. If tbere be but oue newspaper published in such 
county, then publication- shall be made in such newspaper only. Each of 
such newspapers shall be entitled .to five (5) cents and no more for the 
publication of each item for such receipts and expenditures, the same to 
be paid out of the township funds: Provided, however, That this act shall 
not apply to any township wherein is situated a city having a population 
of one hundred thousand (100,000) inhabitants or more, according to the 
last preceding United States census : Provided, further, That not more than 
one item shall be printed in one line. 

Penalty. 

9574. Any trustee or auditor who shall fail to comply with tbe pro- 
visions of this act shall be deemed guilty of a misdemeanor, and upon con- 
viction thereof shall be fined in any sum not less than twenty-five ($25) 
dollars nor more than five hundred dollars. 



ROADS. 

Supervisors — Oath and Bond — Duties — Pay — Vacancy. 

7763. Such supervisor shall take an oath, before entering upon the 
discharge of his duties, for the faithful performance thereof, and give 
bond with surety, to be approved by the township trustee and conditioned 
for the faithful discharge of his duties, in a sum not less than two hun- 
dred dollars, which bond shall be deposited with the township trustee. He 
shall carry into effect all orders of the trustee of the township in which 
the road district is situated, touching tbe highways and bridges therein, and 
keep the same in good repair. He shall also call out all persons in such 
district liable to work on highways therein, superintend the labor thereon, 
see that the same is faithfully performed and report to the trustee all 
fines and commutation moneys due such district and the same shall be 
collected by such trustee : Provided, That if any person elected or appoint- 
ed supervisor shall be unable to give such bond, such inability shall be a 
defense to the collection of the forfeiture provided for in the preceding 
section, and the township trustee shall appoint some one else as supervisor. 
Such supervisors shall have charge of and work and keep in good repair 
the roads of their respective districts. " hey shall be subject to the con- 
trol and direction of the township trustee, who shall see that their duties 
be faithfully performed, and who shall see that the roads of the townships 
are dragged whenever the weather conditions make such work advisable. 
Each road supervisor shall receive for his services actually performed the 
sum of two ($2.00) dollars per day, for not to exceed sixty days in any 
one year. Before receiving such pay he shall file a sworn statement with 
the trustee of the township, which statement shall specify the days and 
roads upon which such services were performed. Such supervisor shall 
not be entitled to ■ charge or receive any compensation whatever for a 
number of days in each year equal to the number required of other per- 
sons of his road district liable to work on highways. Upon failure or neg- 
lect to carry out or perform such duties as are imposed upon him, any- 
supervisor shall be liable upon the bond hereinafter provided for. (As 
amended, Acts 1907, p. 371.) 



43 

• 

Levy of Road Tax— How Made. 

7780. The township advisory board, on an estimate made by the town- 
ship trustee, shall levy annually on or before the first Tuesday in June 
a road tax of not more than thirty cents on one hundred dollars to be 
levied according to the amount of real and personal property owned in 
such township, outside of the corporate cities and towns subject to taxa- 
tion for road purposes, to be collected as other taxes are collected, except 
all road taxes are to be collected with the first yearly installment of taxes : 
Provided, however, That the taxes so assessed on real estate shall be 
worked out, as near as practicable, m the road district in wmich such real 
estate lies, and the taxes assessed on the personal property in the district 
where the owner resides, at the rate of one dollar and fifty cents per day 
for each man. Such supervisor may require any person liable to work on 
such highways, who is the owner of an ox, mule or horse, team and plow, 
road scraper, road scoop, cart or wagon to furnish the same and a driver, 
in such labor upon highways, and such person shall receive credit for two 
days' labor therefor, and shall be receipted by such supervisor accord- 
ingly : Provided, further, That the township trustee may with the con- 
sent of the township advisory board, levy an additional tax, not to exceed 
ten cents on one huudred dollars' valuation, to be paid into the county 
treasury with the first installment of taxes and to be paid by the treas- 
urer to the township trustee, to be expended for the construction and re- 
pair of bridges and culverts and for other road purposes. It shall be the 
duty of the county auditor to procure and deliver each year, on or before 
the 10th of September to the proper township trustee, a list of all road 
taxes assessed on each individual in his township, and the receipt of the 
supervisor of the proper district for the amount worked out by any tax- 
payer shall be taken by the treasurer of the county in payment of so much 
of said taxes, if presented during the year in which the labor has been 
performed, or the year following upon the performance of said labor. No 
supervisor shall issue receipt for work performed by himself, except for his 
own road tax, and no county treasurer shall receive the certificate of any 
supervisor except in payment of taxes on which the work shall be per- 
formed : And, provided, further, That the taxes so assessed on the real 
estate and personal property shall be worked out, as near as practicable, 
in the road district in which said real estate is situate, and the personal 
property under the supervision of the supervisor of the district where said 
labor is performed, in the district in which the owner resides, upon three 
days' notice of the time and place such labor is to be performed : Provided, 
further, That the road tax assessed on real and personal property shall 
be worked out on or before the first day of December of the year for which 
the levy was made. All credits allowed by county treasurers for road 
taxes worked out, upon settlement with the township trustee, to be properly 
distributed and charged, and road supervisors are required to make out 
and deliver to the township trustee, on or before the first day of December. 
in each year, a statement containing a true list of persons of their respect- 
ive road districts having worked out their road tax, or any part thereof, 
during the year, together with the amount worked out by each person. 
(Acts 1905, p. 574.) 



44 

THE PUBLIC ACCOUNTING LAW. 

[Approved March "4, 1009. Acts of 1909, p. 136.] 

Public Accounting — Appointments by Governor. 

Section 1. Be it enacted try the general assembly of the State of In- 
diana, That there is hereby created and established a department of inspec- 
tion and supervision of public offices. J- he principal officer of said depart- 
ment shall be known as state examiner, shall be a skillful accountant and 
well versed in public accounting, and shall receive an annual salary of four 
thousand dollars, and he shall be appointed by the governor. There shall 
also be appointed by the governor two deputy examiners who shall have 
like qualifications as the state examiner, and who shall be of different po- 
litical parties, and each deputy examiner shall receive an annual salary of 
three thousand dollars, and such deputy examiners shall be subordinate 
to the state examiner. It shall be the duty of the governor within sixty 
days after the taking effect of this act, to appoint such state examiner 
and to appoint two such deputy examiners. One of such deputy examiners 
shall be appointed for two years and the other for four years, and their 
successors shall be appointed for four years. The deputy examiners shall 
be subject to removal by the governor upon executive order entered in 
writing and showing cause therefor. The clerk of said department shall 
be appointed by the state examiner, and shall be responsible to the state 
examiner, and shall receive an annual salary of two thousand dollars. Said 
salaries provided by this section shall be paid monthly out of any moneys 
of the state not otherwise appropriated. The department of inspection 
and supervision of public offices shall be provided with suitable quarters 
in the state house. 

State Board of Accounts — Powers — Duties. 

Sec 2. The governor, the auditor of state and state examiner shall 
constitute the state board of accounts and as .such shall formulate, prescribe 
and install a system of accounting and reporting in conformity with the 
provisions of this act, which shall be uniform for every public office and 
every public account of the same class, and which shall exhibit true ac- 
counts and detailed statements of funds collected, received and expended 
for or on account of the public for any and every purpose whatever, and 
by all public officers, employes or other persons, and which shall show the 
receipt, use and disposition of all public property, and the income, if any. 
derived therefrom ; and shall show all sources of public income and the 
amounts due and received, from each source, and shall show all receipts 
vouchers and other documents kept, or that may be required to be kept, 
necessary to separate to itself and prove the validity of every transaction ; 
and they shall formulate all statements and reports made or required to 
be made for the internal administration of the office to which they pertain, 
and all reports published or that may be required to be made or published 
for filing in the office of state examiner or for the information of the 
people, regarding any and all details of the financial administration of 
public affairs ; and they shall from time to time make and enforce such 



45 

changes in the system and forms of accounting and reporting as shall by 
them he deemed wise or ns may become necessary in order to conform 
to law. 

Separate Accounts. 

Sec. 3. Separate accounts shall he kept for every appropriation or 
fund made by or accruing to any municipality, showing date and manner 
of each payment made out of the funds provided for [by] such appropria- 
tion, the name, address and vocation of each person, firm, organization, cor- 
poration or association to whom paid, and for what paid, such name, voca- 
tion and address to be embodied in and verified in all claims by law re- 
quired to be filed for payment. Separate accounts shall be kept for each 
department, undertaking, institution and public service industry. Ac- 
counts of public service industries shall show the true and entire cost of 
the ownership and operation thereof, the amount collected annually by 
general or special taxation for service rendered to the public and the 
amount and character of the service rendered therefor, and the amount 
collected annually from private users, if any, for service rendered to them, 
and the amount and character of the service rendered therefor. 

State Examiner — Reports to — Contents. 

Sec 4. The state examiner shall require from every municipality and 
every public institution, financial reports covering the full period of each 
fiscal year, said reports to be made respectively by the county auditor, 
township trustee, city clerk, town clerk and secretary of the board of school 
trustees or commissioners for their respective municipalities, and by the 
superintendents of public institutions, in accordance with the forms and 
methods herein provided for, which shall be uniform for all accounts of 
the same class, which said reports shall be prepared, verified and filed with 
the state examiner within thirty days after the close of each fiscal year, 
which shall be December 31st of each year in ail cases in which the fiscal 
year is not otherwise fixed by law. Such reports shall contain an accurate 
statement, in summarized form, of all collections made by or receipts re- 
ceived by sucn municipalities and institutions from all sources, all accounts 
due the public treasury but not collected and of all expenditures for every 
purpose and by what authority authorized, and also : 

(a) A statement of all costs of ownership and operation and of all 
income of every public service industry owned by any municipality. 

(b) A statement of the entire public debt of each municipality and 
such other and further or more specific information in relation to the cost 
of any branch of the municipal service or any improvement therein as may 
be required by the state examiner. 

(c) A statement of all revenues received from the payments of liquor 
licenses and in addition thereto an itemized statement of all amounts re- 
maining unpaid upon any liquor licenses theretofore granted or then in 
force. 

(d) A statement showing the amount of the common school funds 
in the custody of each county, including an itemized statement showing the 
investment of all such funds, of delinquent school fund mortgages, ami of 
lands forfeited for non-payment of school fund mortgages. 



46 

Arrangement of Reports — Comparative Statistics — Publication. 
Sec. 5. The substance of the reports required by the provisions of this 
act shall be arranged by the state examiner in such form as shall indicate 
the comparative receipts of the various sources of revenue and the com- 
parative costs of the several branches of government in the specified mu- 
nicipalities and shall be published in an annual statement of comparative 
statistics, which shall be issued for each class of municipalities at the 
expense of the state as a public document, and shall be submitted joy the 
state examiner annually to the governor and to the legislature at ea$k reg- 
ular session. Copies thereof shall also be furnished by him to each mu- 
nicipality named therein. 

Forms for Reports — Blanks, Etc. 

Sec 6. The governor, auditor of state and state examiner shall for- 
mulate, prescribe and approve the forms for reports herein required to be 
made, and the state examiner shall annually furnish to the officers re- 
quired to make reports by the provisions of this act, at least ninety days 
before the time such reports are required to be filed with him, such printed 
blanks and forms on which shall be indicated the information required, 
together with suitable printed instructions for filling out the same. In 
formulating, prescribing and installing a uniform system of accounting and 
reporting, the governor, auditor of stace and state examiner may employ 
necessary clerical assistants and one or more expert assistants at a reason- 
able compensation to be by them determined, and such compensation shall 
be paid out of any moneys not otherwise appropriated, upon vouchers cer- 
tified as to correctness by the state examiner, and complying in all re- 
spects with the law relating to disbursements by the state government. 

Assistants — Field Examiners. 

Sec 7. The state examiner shall appoint assistants not exceeding such 
number as in the judgment of the governor, the auditor and the state ex- 
aminer may be required to administer the provisions of this act. Such 
assistants shall be known as "field examiners" and shall at all times be 
subject to the order and direction of the state examiner, and shall be 
charged with the duty of inspecting and examining accounts of such mu- 
nicipalities. Such field examiners shall be paid as provided in section 14 
of this act, the sum of ten dollars for each day employed, and one railroad 
fare each way between their respective homes and the place of examina- 
tion. No field examiner shall receive more than one per diem for work 
performed in any one flay, and no other allowance for expenses shall be 
made to such field examiners. 

Competitive Examinations. 

Sec 8. Such field examiners shall be appointed from applicants who 
shall have successfully passed an open, competitive examination for test- 
ing their fitness for appointment. Such examinations shall be made at 
stated periods by the chief examiner and deputy examiners after due an- 
nouncement in the public press, and shall be practical in their character, 
and as far as may be shall relate to those matters which will fairly test 
the relative capacity and fitness of the persons examined to discharge the 



duties of the office, and all appointments of field examiners shall be made 
solely upon the ground of fitness and without regard to the political affilia- 
tion of the appointee, excepting that no more than one-half of the number 
of field examiners employed at any one time shall belong to any one po- 
litical party. The state board of accounts is empowered to make and estab- 
lish, and from time to time alter and amend by-laws, rules and regulations 
for the proper enforcement of the provisions of this section. 

State Examiner — Duties — Powers. 

Sec. 9. It shall be the duty of the state examiner, and he is given 
full power to examine personally or through the deputy examiners and 
field examiners, all accounts and all financial affairs of every public office 
and officer and of every public institution, including all state offices and 
state institutions, and shall make such examination at least once each 
year. On every such examination inquiry shall be made as to the financial 
condition and resources of each municipality or institution, whether the 
laws of the state and the requirements of the department of inspection and 
supervision of public offices have been complied with, and into the methods 
and accuracy of the accounts and reports of the office examined. Such 
examinations shall be made without notice. The state examiner, deputy 
examiners or any field examiner when engaged in making any examina- 
tion as provided in this act. or when engaged in any official duty devolved 
upon them as such, shall have the right to enter into any state, county, 
city, or township or other public office or offices in this state, or any pub- 
lic institutions, and examine any books, papers or documents contained 
therein or belonging thereto for the purpose of making such examination, 
and shall have access, in the presence of the custodian thereof or his dep- 
uty, to the cash drawers and cash in the custody of such officer, and they 
shall also have the right, during business hours to examine the public ac- 
counts in any depository which has public funds in its custody pursuant 
to the laws of this state. The state examiner, deputy examiner or any 
field examiner, when engaged in making any examination of any office, 
officer, board or institution, or any other examination authorized by this 
act, may issue subpoenas for witnesses to appear before him in person 
or to produce books and papers before him for inspection and examination. 
They shall have the authority to administer oaths and to examine such 
witnesses under oath orally or by interrogatories propounded touching the 
matters under investigation and examination, and under authority of the 
state examiner, such oral examination may be taken in shorthand and 
transcribed, and the reasonable expense thereof shall be paid by the mu- 
nicipality in the same manner as the compensation of the field examiner 
is paid. Such subpoenas shall be served by any person authorized to serve 
civil process from any court in this state. In case any witness duly sub- 
poenaed refuses to attend, or refuses to produce documents, books and pa- 
pers as required in such subpoena, or shall attend and refuse to make oath 
or affirmation, or being sworn or affirmed, shall refuse to testify when 
called upon so to do, then such person shall be by such examiner reported 
to the prosecuting attorney of the county or .judicial district where the 
offense is committed for proceedings by that officer under section 504 of 
an act entitled "An act concerning public offenses," approved March 10. 



48 

1005, and such examiner may apply to the circuit court having jurisdiction 
thereof for the enforcement of attendance and answers to questions as pro- 
vided by law in the matter of taking depositions. Wilful false swearing 
in such examination shall he perjury and shall be punishable as such. A 
report of such examination shall be made, signed and verified in duplicate 
by the officer making the examination, one copy to be filed with the state 
examiner, one copy to be filed with the officer or institution examined, 
and one copy to be filed with the auditing department of the munici- 
pality examined and reported upon. If any such examination discloses 
malfeasance, misfeasance or non-feasance in office ou the part of any offi- 
cer or employe, an additional copy of such report shall be so made, signed 
and verified, and it shall be the duty of the state examiner to place such 
report with the governor, and the governor shall transmit the same to the 
attorney-general and the attorney-general shall institute and prosecute 
such civil proceedings against such delinquent officer, or upon his official 
bond or both, as will carry into effect the findings resulting from such 
examination and secure to the proper municipality the recovery of any 
funds misappropriated. Any such report as is described in this section or 
a copy thereof duly certified by the state examiner shall be taken and re- 
ceived in any and all the courts of this state, as evidence of the facts in 
such reports stated and contained. It shall be unlawful for any deputy 
examiner or field examiner to make any disclosure of the result of any 
examination of any public account excepting as he shall make the same to 
the state examiner, or as he shall be directed to give publicity to any such 
matter by the state examiner, or by any court. 

Failure to Report — Penalty. 

Sec. 10. Any public officer who shall fail or neglect to make, verify and 
file with the state examiner any such report as is required by this act, or 
who shall fail or neglect to follow the directions of the state examiner in 
keeping the accounts of his office, or who shall refuse the state examiner, 
deputy examiner or field examiner access to the books, accounts, papers, 
documents or cash drawer or cash of his office, or who shall in any way 
interfere with such examiners in the discharge of their official duties shall 
be guilty of a misdemeanor and shall be fined not less than one hundred 
dollars nor more than one thousand dollars, and shall forfeit and be re- 
moved from his office in the maimer now or. hereafter provided by law. 

Fee Records — Fee and Salary Book — Open to Public. 

Sec. 11. There shall be kept in the office of each public officer, board 
commission and institution in this state, a record of fees collected for the 
public treasury, and in addition a separate fee and salary book, both of 
which shall at all times be subject to public inspection, the forms for which, 
for each class of offices, shall be devised and formulated by the governor, 
auditor and state examiner provided in this act. It shall be the duty of all 
public officers in this state, all boards, commissioners, commissions, super- 
intendents of institutions, constables, justice of the peace, town and city 
marshals and mayors, city judges and mayors who act as city judges, and 
all other persons who collect fees for their services or as otherwise pro- 
vided by law or in the course of their official duty, to keep a complete 



49 

record of all such fees collected from any and every source whatever, and 
such officers and persons shall keep a separate record of all such fees as 
are payable into the public treasury, and a separate record showing all 
fees and salaries received by any officer or person, and it shall bo the duty 
of all such officers who employ deputies, assistants, clerks, stenographers 
or other employes who receive a salary, fees from any source whatever, or 
other compensation, paid with public funds, to enter in such fee and sal- 
ary books the names of all such officers and persons, including himself, as 
receive any such compensation, and the amount thereof, from time to time, 
as the same accrues, and to show upon each book the particulars of each 
item and from whom and on what account the same accrues and when the 
same was paid to the officer or other person, and by whom paid. The in- 
tention and purpose of this section is declared to be that such book shall 
contain separately the items and totals of all sums collected for the benefit 
of the public treasury and of all sums received by the respective persons 
for all services rendered and which accrues to them respectively on ac- 
count of their exercising the duties of such position so held by them re- 
spectively, and that this section shall be construed to apply to all state offi- 
cers, state institutions, state commissioners or commissions, and to all 
county, city, town, township and school ocers in this state. Such records 
as are provided for in this section shall be public records and shall always 
be^ accessible to the public. 

Fines or Forfeitures — Record Book — Reports — Penalty. 

Sec. 12. It shall also be the duty of any officer who collects or receives 
fines or forfeitures belonging to the State of Indiana, to keep in a separate 
book a record of all sums received from such fines and forfeitures, the 
amount of each and from whom and when received. It shall be the duty 
of the clerk of every court possessing criminal jurisdiction, and of every 
justice of the peace, mayor or city judge who assesses fines, to make re- 
port forthwith to the auditor of state of any and all fines assessed in such 
courts or oy such justices of the peace, mayors or city judges for violation 
of the criminal statutes of the State of Indiana, and upon payment of any 
such fines forthwith to report such payment to the auditor of state, and 
it shall be the duty of such officers immediately upon the occurrence there- 
of, to report to the auditor of state the forfeiture of all bonds and recogni- 
zances in which the principals have defaulted, and for the purpose of 
making such report a forfeiture shall be deemed to have occurred when- 
ever and as soon as the principal in said bond or recognizance shall have 
defaulted therein, and upon payment of any such forfeiture the same shall 
be by such officer reported forthwith to the auditor of state, and it shall 
be the duty of the auditor of state to keep an account of all such fines and 
forfeitures and payments thereof and to charge such officers therewith as 
debtors to the common school fund immediately upon the report of pay- 
ment thereof. The examination in this act provided for shall extend to 
the offices of justices of the peace and all mayors and city judges who col- 
lect and receive such fines and forfeitures. The expense of such examina- 
tions shall be paid for by the township in and for which such person i* 
justice of the peace, or by the city or town for which such person is mayor 



50 

or, judge, as the ease may be. and as provided in section 14 of this act. 
Any public officer who shall violate any of the provisions of sections 11 and 
12 of this act or fails to comply therewith shall be guilty of a misdemeanor. 
and upon conviction thereof shall be fined not less than one hundred dol- 
lars nor more than five hundred dollars, and shall forfeit and be removed 
from his office as now or hereafter provided by law. 

Audit of Bills — Certifying Claim — Warrant — Quietus. 

Sec 13. It shall be the duty of every officer having authority to draw 
the warrant of the state or of any municipality referred to in this act in 
disbursing its funds, or who has authority to execute the receipt and 
quietus of the state or of such municipality in settlement with public offi- 
cers or with debtors, before presenting the same for allowance to the board 
or other authority required to pass upon the same, to make an examination 
of all claims as to their form, the authentication thereof as required by 
law. whether they are based upon contract or statutory authority, and as 
to their apparent correctness, and upon presenting the same to file there- 
with his certificate in writing as to such matters in respect to each and all 
of such claims ; and where the authority to pass upon and allow such claim 
is lodged in such officer, he shall, before drawing a warrant therefor, cer- 
tify to the correctness thereof over his official signature, and it shall be his 
duty before issuing the receipt or quietus of the state or municipality to 
any debtor or any officer making settlement with the state or municipality 
to examine the report, account or settlement sheet upon which settlement 
is made, and to require of such debtor or officer, or to otherwise secure all 
such information, accounts, vouchers or exhibits as shall be necessary to 
satisfy such officer issuing such receipt or quietus of the correctness of 
such report, account or settlement sheet, and to certify thereon that he has 
made such examination and is satisfied as to its correctness, and no such 
warrant or quietus shall be issued by any such officer until such certificate 
shall have been executed and filed with such claim, report, account or set- 
tlement sheet. 

Expense of Examinations — How Paid. 

Sec 14. The expense of examination and investigation of public ac- 
counts, provided for herein, shall be paid by each municipality for the ex- 
amination and investigation of its accounts, including those of its public 
service industries, and when any field examiner shall file with the state 
examiner his voucher in form prescribed by law relating to state expendi- 
tures, the state examiner, if he approve the same, is hereby authorized and 
empowered to certify the expense of such examination and investigation to 
the auditor of the county in which such municipality is situate, who shall 
forthwith and without any appropriation being made therefor, issue his 
warrant for the amount stated in such certificate on the county treasurer, 
payable to the person named in such certificate, out of the general fund of 
the county, said fund, except as to expenses for examining and investigat- 
ing the financial affairs of the county and its offices and officers, to be re- 
imbursed by the county auditor out of the moneys due such municipality 
at the next semi-annual settlement of the collection of taxes, in case of 



51 

school corporations the same to be deducted from the special school fund. 
In the event the county to whom such claim may be made shall not have 
possession or collection of funds due or to be due to any municipality the 
affairs of which are examined, then such certificates shall be filed with, 
and such warrant shall be drawn by the disbursing officer of such munici- 
pality having authority to draw warrants upon its funds, and said warrant 
shall be paid forthwith without any appropriation being made therefor. 
In case it shall be necessary to employ such field examiners in the in- 
vestigation of state offices or state institutions then such certificate of ex- 
pense shall be made to the auditor of the State of Indiana, who shall draw 
the warrant of the state to cover, the same, which warrant shall be paid 
out of funds not otherwise appropriated. 

Traveling Expenses. 

Sec. 15. The necessary traveling expenses of the state examiner and 
his deputies when engaged in the business of the state, shall, when approved 
by the governor and duly itemized and accompanied with vouchers, as 
required by the law relating to state expenditures, be paid out of moneys 
not otherwise appropriated. 

Bonds Required. 

Sec 16. The officers provided for by this act shall each give bond for 
the faithful performance of his duties, as follows : The state examiner in 
the sum of five thousand dollars, to be approved by the governor ; each 
deputy examiner in the sum of three thousand dollars, to be approved by 
the governor ; and each field examiner in the sum of one thousand dollars, 
to be approved by the state examiner. 

Definitions. 

Sec 17. The term "municipality," as used in this act, shall be con- 
strued to extend to, include and mean any county, township, city, town, 
school town, school township, or school city in this state. The term "public 
office," as used in this act, shall be construed to extend to, include and mean 
the office of any and every person who for or on behalf of the state or any 
municipality or any public service industry, holds, receives, disburses or 
keeps the accounts of the receipts and disbursements of any public funds. 
The term "public officer," as used in this act, shall be construed to extend 
to, include and mean any person who holds, receives, disburses or is re- 
quired by law to keep any account of public funds. The term "public insti- 
tution," as used in this act, shall be construed to extend to, include and 
mean any institution or public service industry maintained in whole or in 
part at public expense or supported in whole or in part by appropriations 
or public funds or by taxation. The term "public service industries." as 
used in this act, shall be construed to extend to, include and mean any 
and all public service industries owned either directly by the municipality 
or to the support of which the municipality contributes from public funds. 
or. the capital stock of which the municipality may be the owner of any 
part, or the bonds of which may be owned or guaranteed by the munici- 
pality. 



52 

Bribe — Offer or Acceptance — Penalty. 

Sec. 18. If nay person shall give or offer to any state examiner, deputy 
examiner, field examiner, clerk or other employe of the department of 
inspection and supervision of public offices, any money, gift, emolument, 
compensation or thing of value in order to influence the action of such 
examiner or other person in any matter pending in said department or in 
the matter of the examination of any public account, or for the purpose of 
preventing or delaying the examination of any public account or for the 
purpose of influencing the action of such examiner or other person in fram- 
ing, changing, withholding or delaying any report of any examination of 
any public account, he shall, upon conviction thereof, be fined in any sum 
not more than five thousand dollars or shall be imprisoned in the state 
prison for not less than one year nor more than fourteen years, or both, 
and any state examiner, deputy examiner, field examiner, clerk or other 
employe of the department of inspection and supervision of public offices 
who shall receive or solicit any money, gift, emolument, compensation or 
thing of value for the purpose of being influenced in any matter pending in 
said department or in the matter of the examination of any public account, 
or for the purpose of being influenced to prevent or delay the examination 
of any public account or for the purpose of being influenced to change, 
delay or withhold any report of the examination of any public account, 
shall, upon conviction thereof, be fined in any sum not more than five 
thousand dollars, or shall be imprisoned in the state prison for not less 
than one year nor more than fourteen years, or both. For the purpose 
of this section the term "public account" shall be construed to extend to, 
include and mean any account, the examination of which is provided for in 
this act. 

Examination Without Notice — Penalty. 

Sec. 19. All examinations provided for in this act or made under or 
pursuant to the provisions of thi§ act shall be made without notice to the 
officers whose accounts are to be examined, and without notice to any clerk, 
deputy, employe or other person employed in or connected with the office 
or the business of such officer, and any person who shall give or cause 
to be given directly or indirectly any notice or knowledge of any proposed 
examination of any public account to the officer in charge of such account 
or to any other person other than as such notice or knowledge shall be 
communicated as between the state examiner, deputy examiners and field 
examiners, shall, upon conviction thereof, be fined in any sum not exceed- 
ing five hundred dollars, or shall be imprisoned in the county jail for not 
less than six months, or both. 

Books, Records and Forms. 

Sec. 20. No system for uniform bookkeeping or any book, record or 
form which may hereafter be adopted shall be copyrighted unless it shall 
be deemed expedient by the governor that a copyright be procured in the 
name of the state; and, if any such copyright be procured, the acceptance 
by the state or by any municipality of any bid for printed supplies of any 
sort shall operate as a license from the state to the successful bidder to 
manufacture any such copyrighted books, records or forms included in such 



53 

bid for public use witbout payment of royalty. All public books, records 
and stationery used in tbe offices for which examination is provided in this 
act. shall be purchased by the state, municipality or institution after tbe 
manner now provided by law. 

When Act in Effect. 

Sec. 21. The uniform system of accounting and reporting and inspec- 
tion provided therefor shall be installed as far as possible in all tbe offices 
referred to in this act, at the beginning of the next fiscal year of the 
municipality subsequent to the taking effect of this act. The examination 
provided for in this act under authority of the state examiner shall not 
extend back more than one year prior to the beginning of such fiscal year 
except on authority of the governor. 

Officers — Duties as to Books, Etc. — Penalty. 

Sec 22. It is hereby made the duty of the various officers of the state 
and its insti !:utions and municipalities to adopt and use the books, forms, 
records and systems of accounting and reporting that shall be adopted by 
the board of accounts, when directed so to do by said board, and all forms, 
books, and records necessary thereto shall be purchased by said officers 
and in the manner now provided by law. Any officer or person who shall 
refuse to provide such books, forms, or records, or who shall fail or refuse 
to use them, or who shall fail or refuse to keep the accounts of his office 
as directed by said board as provided herein, shall be guilty of a misde- 
meanor, and upon conviction shall be fined not less than one hundred 
($100) dollars and removed from such office. 

Repeal. 

Secs, 23. All laws and parts of laws in conflict with this act are 
hereby repealed to the extent of such conflict ; provided, that the provisions 
of this act shall not be construed to relieve any officer of any duties now 
required by law of him with relation to the auditing of public accounts or 
the disbursement ois public funds, but the provisions of this act shall be con- 
strued to be supplemental to all existing provisions of law safe-guarding 
the care and disbursement of public funds: And, provided further, That 
the provisions of this act shall not be construed to limit or curtail the 
power of the governor of the state, under existing laws, to make examina- 
tion or investigation of any public office or to require reports therefrom. 



INDEX 



ABANDONED BUILDING PROJECT— Page 
use of tax levied for 9 

ACCOUNTING— 

by preceding trustee 3 

ADDITIONAL ROAD TAX— 

levy and limit of 8, 43 

collection 8, 43 

when paid to trustee & 

ADDITIONAL SPECIAL SCHOOL TAX— 

levy, collection and receipt of 8 

ADVISORY BOARD— 

is board of finance 5 

powers and duties of ' 21-29, 35 

debt not valid unless authorized by 23, 37 

compensation of 32 

annual ineetiug to make tax levy and appropriations 21, 35 

supervises letting of contracts 26, 40 

must keep record 22, 35 

annual settlement with trustee 27, 39 

ADVERTISING — 

from what fund paid 11 

AFFIDAVIT— 

by bidders 27 

ANNUAL FINANCIAL REPORT OF TRUSTEE— 

when and to whom made 27, 39 

report to county superintendent 27 

publication of 12 

cost of publication, from what fund paid 12 

APPRAISEMENT— 

of damages done by dogs 16 

APPROPRIATIONS— 

by advisory board 22. 37 

separate accounts must be kept of 45 

ASSESSMENTS AGAINST TOWNSHIP— 

from what fund paid 12 

ASSESSOR'S REPORT AND SETTLEMENT— 

of dog tax 15, 30 

(54) 



55 

BIDS AND CONTRACTS— Page 

requirements as to Dotiee and bids 25, 20, 27, 40, 41 

bidders' non-collusion affidavit 27 

bids not required in employment of janitors and drivers 20 

BOARD OF FINANCE— 

advisory board is 5 

BOND OF TRUSTEE— 

amount and where filed 3 

exemption from liability on 6 

of road supervisor ^ 42 

of bidder to secure performance of contract 27 

BONDS— 

for construction of school house 23, 37 

BOOKS, RECORDS. STATIONERY AND PRINTING— 

from what fund paid for 11 

BORROWING— 

from one fund to pay claim against another illegal 4 

to meet emergency expenditures 23, 37 

BRIDGES AND CULVERTS— 

construction and repair of 12, 13, 24, 25 

BUILDINGS— 

construction and repair of 25 

BURIAL OF INDIGENT PERSONS— 

payment of cost of 14 

CASH BOOK— 

trustee must keep 4, 7 

CHECKS— , 

form of, and manner of drawing . : 6 

CIVIL TOWNSHIP— 

expenditures of 11-17 

CLAIMS— 

trustee must certify correctness of 7 

refusal to pay 33 

COMMON SCHOOL FUND— 

apportionment to township 9 

COMMUTATION MONEY— 

payment to trustee 10 

COMPULSORY EDUCATION TAX— 

levy and limit of 8 

collection , S 

when paid to trustee 8 



56 

CONTRACTS— Page 

how let 2(3, 40 

when void 27, 41 

bidders' affidavit 27 

COUNTY AUDITOR— 

inspection by 4 

keeps poor account 13 

duty to examine trustee's report 29, 39 

COUNTY SUPERINTENDENT— 

inspection by , 4 

trustee's report to 27 

duty when tuition fund exhausted 19 

DAILY BALANCE— 

requirement as to 4, 7 

DEPOSIT OF PUBLIC FUNDS— 

number of depositories 5 

choosing depositories 5 

verified statement to board of finance 5 

how deposits are made 5, G 

time of making deposits 5 

interest credited to tuition fund 5 

failure to make, penalty 6 

drawing warrant-checks contrary to law 6 

form of and manner of drawing warrants 6 

DITCH ASSESSMENTS— 

pa yment of by trustee 12 

DOCKET FEES— 

when received by trustee and applied to township fund 10 

DOG FUND— 

collection of tax by assessors 9, 15 

payment to trustee 15 

for what purposes used 15, 16 

how expended 16 

claims for damages, how made 16 

appraisement, limitation upon . . . 16 

register of claims 16 

disposition of surplus fund 16 

trustee's report to county auditor , . . . . 17 

DOG TAX— 

collection by assessor 9 

payment to trustee 9 

use of 15, 16 

assessor's report to trustee 30 



57 

DRIVERS AND JANITORS— Page 

employment and pay of 20. 32 

EMERGENCY EXPENDITURES— 

advisory board must authorize 23, 37 

borrowing money to meet 23, 37 

issuing bonds or warrants 23. 37 

ENUMERATION OF SCHOOL CHILDREN— 

compensation for taking 20 

ESTIMATES OF EXPENDITURES— 

requirements as to 21, 22, 36, 37 

EXAMINATION— 

of books and accounts 4 

by state board 4, 47 

by county superintendent 4 

by county auditor 4 

expenses of, how paid 12, 21 

EXEMPTION— 

of trustee from liability, when 6 

EXPENDITURES— 

by township trustee 11-32 

EXPENDITURES, MANNER OF— 

trustees' estimates, submission to advisory board 21. 30 



estimates must be itemized, 
action of advisory board . . , 



oo 



•>•) 



• x 



• > i 



appropriations by advisory board 22. 37 

advisory board must keep record. .22, 35 

emergency expenditures, how authorized 23, 37 

borrowing money, how and for what purpose 23. 37 

issue of bonds or warrants 23, 37 

construction and repair of school buildings, 23, 25, 40 

creation of debt, advisory board must authorize 23. 37 

purchase of supplies 24, 40 

road machinery and materials 24 

highways and bridges 24. 25. 40 

notice, bids, contracts and bonds 20. 27. 40 

FEES OF JUSTICES OF THE PEACE— 

payment to trustee 10 

FINANCE BOARD— 

advisory board composes ."» 

verified statement made to 5 

FINANCIAL RECORD AND CASH BOOK— 

form and use of 7 



58 

FISCAL YEAR— Page 

of township 3, 45 

FORMS PRESCRIBED BY THE BOARD OF ACCOUNTS— 

compulsory use of * .... 7, 53 

purchase of book aud blank forms 7, 57 

FUNDS (see separate heads) — 

diversion of illegal 4 

manner of handling 3-7 

separation of 4, 45 

use of 4, 45 

HANDLING FUNDS— 

requirements as to 3-7 

HIGHWAYS AND BRIDGES— 

. improvement and repair of 25 

specifications for bidders 25 

notice of letting work 25 

INSPECTION— 

of books and accounts 4, 47 

INSTITUTE— 

township, teacher's pay for attending 20 

INTEREST— 

on township deposits, goes to tuition fund 5, 10 

JANITORS AND DRIVERS— 

employment and pay of v 20', 32 

time and manner of paying 6, 20, 32 

JUSTICES OF THE PEACE— 

docket -fees, when paid to trustee 10 

fees when justice is paid salary 10 

supplies furnished to 11 

LIBRARY FUND— 

taxes for library purposes 17 

limitation of tax 17 

LIBRARY TAX— 

levy of 8 

LOCAL TUITION TAX— 

levy and limit of 8 

collection 8 

when paid to trustee 8 

MANNER OF EXPENDITURES— 

requirements as to 21-27 

(see Expenditures, Manner of.) 



59 

MANNER OF HANDLING FUNDS- Page 
requirements as to 3-7 

MEDICAL AID— 

for poor . . . ., 14 

NOTICE— 

of meeting of annual advisory board 21, 36 

of letting contracts 25, 26, 40 

of special meeting of advisory board 23, 37 

OFFICE RENT— 

from what fund paid « 11 , 37 

OVERSEER OF POOR— 

trustee is 3, 13 

duties of overseer 13-15 

PAYMENT— 

of claims, manner of 6, 7, 33 

of salaries and wages 6, 11, 30-32 

PENALTIES- 

for drawing checks illegally 6 

for failure to use prescribed forms ' 7 

under depository law 33 

unlawful interest in contracts '. 33 

for refusal to pay just claim 33 

for extortion and negligence : 33 

for failure to account 34 

for diversion of funds ' " 34 

for failure to publish financial report 29, 42 

for failure to report to state examiner 48 

POOR (see Poor Fund) — 

trustee is overseer of ... . .■ 3, 13-15 

relief of 13-15 

tax to reimburse county 8 

POOR FUND— 

of what composed 13 

how managed 13 

appropriation by county council 13 

advancement by county 13 

tax to reimburse county 8, 13 

county auditor keeps account 13 

auditor's report to trustee 13. 14 

disbursement of poor fund 14, 15 

temporary aid, limitation of 14 

medical aid 14 

soldiers and their widows, burial of 14 

other burials 14 

school books and clothing for children 15 

transportation and removal of poor 15 



60 

PREDECESSOR— Page 
accounting by g 

PRINTING AND STATIONERY— 

from what fund paid 11, 37 

PUBLIC ACCOUNTING— 

act concerning 44 

PUBLIC DEPOSITORIES— 

how chosen 5 

number of 5 

. making deposits 5, 6 

drawing money from 6 

PUBLIC PROPERTY— 

sale of 10 

PUBLICATION OF FINANCIAL REPORT— 

requirements as to 29, 40, 41 

PURCHASE OF SUPPLIES— 

requirements as to 24, 26, 27, 40 

RECEIPTS AND EXPENDITURES— 

requirements as to 29, 40 

publication of 41 

RECEIPTS— 

of funds by township trustee 8, 9, 10 

REMOVAL OF POOR— 

proceedings for 15 

REPAIR OF SCHOOL BUILDING— 

statement for use of bidders. 25, 40 

current and incidental repairs, what are 25 

REPORTS— 

to state examiner . 45, 46, 48 

REPORTS AND SETTLEMENTS— 

trustee's report to county superintendent 27 

trustee's annual financial report to advisory board 27, 39 

duty of advisory board 28, 39 

copy of tAistee's report filed with county auditor 29, 39 

duty of auditor to examine 29, 39 

publication of financial report 29, 40, 41 

cost of publishing report 12 

trustee's report and settlement as overseer of the poor 30 

supervisor's report and settlement with trustee 30 

assessor's report and settlement of dog tax 30 



61 

ROAD FUND— Page 

what composes it 12, 43 

disbursement of 12, 13 

improvement of highways, culverts and bridges 12, 13 

maimer of expending 12, 13 

notice and bids 12,13 

road receipts, trustee cannot redeem 12 

emergency road fund 13 

location and repair of bridges 13 

commutation inoney 13 

road tools, how purchased.* 13 

ROAD SUPERVISOR (see Supervisor of Roads) — 

ROAD TAX— 

levy and collection of 8, 43 

ROAD TOOLS AND IMPLEMENTS— 

purchase of 13, 24 

SALARIES AND WAGES— 

what paid from township fund 11 

trustee's per diem 30, 31, 41 

as trustee and as overseer 30, 31 

claim for services must be itemized and sworn to 31 

allowance of per diem by advisory board 31, 41 

trustee's salary, how graded 31 

supervisor's per diem, limit of days 31, 42 

pay of advisory board 32 

pay of school enumerators 32 

wages of teachers 18, 19, 32 

pay of janitors and drivers 32 

compensation of state examiners, how paid 32, 50 

SALE OF PUBLIC PROPERTY— 

manner of 10 

SCHOOL ACCOUNTS— 

expense of examination of 21 

SCHOOL BOOKS AND CLOTHING— 

duty of trustee to furnish 15 

SCHOOL BUILDINGS— 

construction of, plans and specifications 25, 40 

issuing bonds to construct 23, 37 

repair of 25. 40 

SCHOOL CHILDREN— 

books and clothing for poor 15 

SCHOOL ENUMERATION— 

compensation for taking 20 

SCHOOL FUNDS— 

(See Tuition Fund; Special School Fund; Common School Fund.) 



62 

SCHOOL PROPERTY— Page 
trustee manages 17 

SCHOOL SUPPLIES— 

manner of purchasing 24, 40 

estimate and classification 24, 40 

SCHOOL TAXES— 

local tuition and special school . . '. 8 

state tuition 9 

when received by township 8, 9 

SCHOOL TOWN SH IP- 
expenditures of 17-21 

SCHOOL TRANSFERS— 

cost of, from what fund and when paid 11, 20 

SEPARATION OF FUNDS— 

requirements as to 4, 45 

SOURCES OF TOWNSHIP FUNDS— 

information as to 8, 9, 10 

SPECIAL SCHOOL FUND— 

tax for, levy and collection of 8, 19, 22 

when paid to trustee 8 

disbursement of special school fund 20 

construction, repair or rent of schoolhouses 20, 23, 25 

furniture and school apparatus aud supplies 20, 24 

fuel and other expenses 20 

supplements tuition fund 20 

teachers' salaries and transfers 20 

cost of transfers, amount and payment of 20 

janitors and drivers, employment and pay of 20 

transportation of school children 20 

purchase of school wagons 20 

expense of school enumeration 20 

expense of examination of school accounts 21 

manner of expending fund 21, 25 

SPECIAL SCHOOL TAX— 

levy and limit of 8 

collection 8 

when paid to trustee 8 

STATE BOARD OF ACCOUNTS— 

powers and duties of 44 

STATE EXAMINER— 

reports to 45, 46 

powers and duties of 47 

STATE TUITION TAX— 

when apportioned to township 9 



63 

STATIONERY, PRINTING, ETC.— Page 

from wha t fund paid for 11, 37 

SUPERVISOR OF ROADS— 

is subject to orders of trustee , 12, 42 

report and settlement 10, 30 

paying money to trustee . . 10, 30 

from what fund salary paid._ 11 

trustee to audit report , 30 

oath, bond and pay of 31, 42 

limit of service 42 

SUPPLIES— 

for justices of peace, how furnished 11 

for schools, manner of purchasing 24, 40 

purchase of other supplies 24 

TAXES— 

rates of, how fixed ■ 8, 22 

levy of by funds 8 

limit of levy 8 

collection of 8 

when paid to trustee 8 

unexpended special taxes 9 

tax for abandoned project 9 

state tuition tax. when apportioned to township 9 

dog tax 9 

TEACHERS— 

time and manner of paying 6 

contracts and wages 18, 19, 32 

pay for attending institute 20 

TOWNSHIP BOARD OF FINANCE— 

advisory board composes , 5 

TOWNSHIP FUND— 

tax for 8 

unexpended special taxes applied to 9 

taxes for abandoned projects transferred to 9 

of what composed 11 

disbursement of 11 

what payable out of : 11, 12 

salaries, except teachers 11 

printing and advertising : 11 

official books and records 11 

justices' supplies 11 

office rent 11 

cost of school transfers 11 

cost of publishing report 12 

ditch assessments 12 

expense of examinations 12 



64 

TOWNSHIP INSTITUTE— . Page 

teachers' pay for attending 20 

TOWNSHIPS— 

number of 3 

both civil and school corporations 3 

limitation of indebtedness 3 

deposit of funds 5, 6 

TRANSFERS— 

cost of, from what fund paid 11 

cost of, amount and when paid 20 

TRANSPORTATI ON— 

of poor 15 

of school children 20 

TRUSTEES BOND— 

amount and where filed 3 

exemption from liability on 6 

TRU STEE"S COMPENSATION— 

from what fund paid 11, 31 

amount and how paid 30, 32 

TUITION FUND— 

interest on deposits goes to 5, 10 

local tuition tax 8 

state tuition tax, when apportioned to township. 9 

of what tuition fund is composed 18 

when paid to trustee 18 

disbursement of 18 

wages of teachers 18, 19 

teacher's contracts 18 

bow rate of wages fixed 18, 19 

length of school term 18 

transfer costs 11, 18, 20 

deficiency, how supplied 19 

TUITION TAX— 

local tuition tax, levy and limit of . . . , 8 

when paid to trustee 8 

state tuition tax, levy and limit of 9 

when apportioned to township 9 

UNIFORM ACCOUNTING— 

act providing for 44 

VOUCHERS— 

form of and requirements as to 6 

WAGES— 

(See Salaries and Wages.) 

WARRANT-CHECKS— 

form of and manner of drawing 6 



LIBRARY OF CONGRESS 






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